IBM Main Project 98

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    Executive Summary

    This export plan is for the launch of BBQ Tonight in the UAE to see the enviromental

    effect on business. After undertaking a thorough country screening, where we screened

    three countries, namely United States of America, United Kingdom and United Arab

    Emirates, we have decided to target UAE.. After this, we conducted a situation analysis

    where we took the demographic, political, economic, legal and cultural factors of the

    UAE into account. After thoroughly understanding our market, we came up with the

    export plan. This plan addressed many factors. First, we spoke about setting up an

    international division within the organization... The BBQ Tonight meal will also be

    adapted to local tastes and will have a smaller amount of spices than the ones sold in

    Pakistan. It will carry only a small price compared to other food items available. The

    funds we will use to finance this venture will be generated internally, with the choice of

    turning to Pakistani banks in the UAE after a year.

    GLOBAL SCREENINGAND COUNTRY SELECTION

    Is a process were appropriate success factors are taken into account to select list of

    potential countries were the product can be exported.

    Factors which were considered in order to screen out countries are as follows:

    POPULATION:

    Reason for choosing the factor stated above:

    1. The higher the population level of a country means more chances for thecompany to serve people belonging from different classes may that be higher

    class, middle class, lower class.

    2. High population not all the time indicates greater market but it does indicate

    more consumption among individuals thus more consumer spending.

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    World's Population by Continents

    After reviewing the table it was decided as to choose Asia and America out as it carries

    the most population

    COUNTRY SELECTION:

    (2007) Population and Settlements, has revealed the following:

    Countries Population

    Afghanistan 28395716Bangladesh 156,050,8

    83India 11801660

    00Kyrgyzstan 5,482,000Maldives 369,031Nepal 28,563,377

    United States of America 310,497,0

    00United Kingdom 62,008,04

    9United Arab Emirates 4,798,491

    Asia 3,879,000,000Africa 1,000,010,000Europe 830,364,178

    North America528,720,588

    South America 385742554

    Oceania (incl. Australia) 32,352,618

    Antarctica no permanent population

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    The next step is to eliminate countries with low population because lesser the number of

    people in areas the lesser the consumption of the product which would lead to low sales

    and hence small profits and secondly due to the fact that everyone will not be willing to

    use our product thus leaving with a very small percentage of success for the firm in

    exporting its product to areas that carry very low population.

    Thus it leaves us with countries namely

    Countries Population

    Afghanistan 28395716Bangladesh 156,050,8

    83India 11801660

    00United States of

    America

    310,497,0

    00United Kingdom 62,008,04

    9United Arab Emirates 4,798,491

    GDP PERCAPITA:

    Reason for choosing the factor stated above:

    GDP per capita is one way to determine of how well off the average person is in a

    country

    A higher GDP per capita would indicate more income which means more consumer

    spending , more purchasing power thus resulting in better chance for the restaurant to

    capture greater market share with more sales and earn maximum profits.

    GDP per Capita for countries.

    Countries GDP per Capita

    Afghanistan $21,340Bangladesh $224,889India $3,526

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    United States of

    America

    $14,256,275

    United Kingdom $2,139,400United Arab Emirates $184,984

    Countries carrying low GDP per capita are ignored and 3 countries are chosen namely

    1. United States of America

    2. United Kingdom

    3. United Arab Emirates

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    POLITICAL ANALYSIS

    Degree of Democracy and freedom in countries as follows

    POLITICAL ANALYSISECONOMIC ANALYSISSOCIAL ANALYSISENVIRONMENTAL ANALYSIS

    United Kingdom

    (UK)

    United Arab Emirates

    (UAE)

    United States of America

    (USA)

    Country PR CL Status

    United Kingdom 2 4 Free

    United States of

    America

    4 5 Partly Free

    United Arab Emirates 2 3 Free

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    P.L=Political Rights, C.L=Civil liberty

    On a scale from 1 (most free) to 7 (least free).

    Tariff Rate

    Country Weighted average Tariff Rate Year

    United Kingdom 1.3 % 2008United States of

    America

    1.5 % 2008

    United Arab Emirates 3.6% 2008

    Income Tax and Corporate Tax Rates

    Country Income tax rate Corporate tax rate

    United Kingdom 35 25

    United States of

    America

    33 33

    United Arab Emirates 30 32.5

    ECONOMIC ANALYSIS:

    Unemployment Rate

    Countries carrying low unemployment rate would be preferred thats so because low

    unemployment will mean more people with jobs which would result in greater amount of

    people earning for a living thus more consumer spending.

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    Countries Unemployment rate (%) Year

    United Kingdom 69.0 2010 estUnited States of America 67.7 2010 estUnited Arab Emirates 20.60% 2010 est

    Wealth Index

    Is the Average of indicators of household wealth which is based on average of needs

    (food, sanitation, water) and income (GDP) scores and national wealth that is size of

    economy, inflation, unemployment, debt).

    Country Wealth IndexUnited Kingdom 42

    United States of America 21

    United Arab Emirates 28

    A higher value indicates a greater level of wealth.

    Inflation Rate (consumer prices)

    Annual percent change in consumer prices compared with the previous year's consumer

    prices.

    Countries Inflation Rate (consumer prices)

    United Kingdom 2.1%United States of America -0.70%United Arab Emirates 1.50%

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    http://www.cia.gov/cia/publications/factbook/geos/ce.htmlhttp://www.cia.gov/cia/publications/factbook/geos/in.htmlhttp://www.tradingeconomics.com/Economics/Unemployment-rate.aspx?symbol=AEDhttp://www.cia.gov/cia/publications/factbook/geos/ce.htmlhttp://www.cia.gov/cia/publications/factbook/geos/in.htmlhttp://www.tradingeconomics.com/Economics/Unemployment-rate.aspx?symbol=AED
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    Human Development Index:

    Country HDI

    United Kingdom 0.859

    United States of America 0.951

    United Arab Emirates 0.868

    Trade Balance:

    Country Export in billions Import In billions Trade Balance

    United Kingdom $ 157.3 $ 116 $ 12.92

    United States of America $ 76.23 $ 113.1 $ -36.87United Arab Emirates $ 174.7 $ 144.5 $ -1.928

    SOCIAL ANALYSIS:

    Population Density (per sq km)

    BBQ Tonight restaurant is basically targeted to the urban population therefore for the

    firm this factor is considered as important as it helps to select the ideal country where the

    density of urban population is high thus resulting in lower transportation cost, more

    potential customers available at every step.

    Country Population Density

    United Kingdom 244

    United States of America 29United Arab Emirates 30

    Higher figure illustrates higher population per square kilometer

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    Literacy Rate:

    In order to bring out awareness among the individuals marketer needs to be aware of its

    market that is how much literate are they or not and how easily they can understand the

    importance, benefits of the product being offered.

    This fact leads us to select the following factor as the more the literacy rate the easier it

    would be to promote a product and more easier to devise marketing campaigns

    Country Literacy Rate

    United Kingdom 99.0%United States of America 99.0%United Arab Emirates 90.0%

    COMMUNICATIONAND TRANSPORTATION:

    Communication and Transportation both are important factors when we are talking about

    going global that is providing the good or service to a foreign market. The Better the

    infrastructure and communication facility the more it is easy for any product to penetrate

    into the market.

    Countries Infrastructure Index Communication Index

    United Kingdom 83.6 28United States of America 82.40 33

    United Arab Emirates 79.90 31

    A higher index value indicates better communication or infrastructure in the country.

    ENVIRONMENTAL ANALYSIS:

    Natural Hazards

    United Kingdom

    Droughts, floods; dust storms, earthquakes

    United States of America

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    Droughts; floods, thunderstorms; earthquakes

    United Arab Emirates

    Heavy Rain

    United States of America (USA)

    Market Size

    The US made up of various ethnic groups. 35 million of the nation comprises Hispanics,

    approx 12% of the population (Wikipedia, 2006) and 12 million of the population is

    Asian, representing approx 4% of the population (US Census Bureau, 2004). California,

    New York and New Jersey are the main areas to be targeted, as they have the largest

    South Asian populations (Promar, 2000). Combining these two groups with similar tastes

    makes for a total estimated market of approximately 50 million.

    Consumer Tastes and Preferences

    Asian groups prefer intense, flavorful, spicy and diversified food (Promar, 2000). All

    Asian subgroups have rice as a staple food. Ordinary Americans prefer beans, lentils and

    other quick food. Junk food is very big in the US and satisfies a huge market. A large

    number of people are health conscious too so eating oily foods is not high on their

    agenda. But, our target market prefers spices and rice and that works to our advantage.

    Where is the Market Headed

    The market is headed in different directions. On one hand, people are becoming health

    conscious while on the other hand people are displaying a preference for junk food. Forty

    percent of Americans said organic food will be a bigger part of their diet within one year

    and 63 percent buy organic foods and beverages regularly (Cukan, 2005). Junk food is

    also increasing as time pressures force Americans to forsake healthy, home-cooked meals

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    (Mercola, 2002). Americans are getting nearly one-third of their calories from junk foods

    (Adams, 2004). In conclusion we can say that due to brand loyalty and time pressures, the

    market for junk food will be sustained.

    Logistics

    The US has easy transportation, well developed road, rail and air networks. Ingredients

    are not a problem as they will be imported. New Jersey and California, major markets,

    are near to large ports. So this does not present a very large problem. Delivery will form

    major part of the sales, so a fleet of vehicles will have to be employed.

    International Mindsets of Suppliers/Mentality

    The US has an open economy where demand drives what is produced and sold. Suppliers

    also have a very open and international mindset. They do not hesitate to make contact

    with international businesses and are growth driven.

    Strategic Alliances for Distribution

    Initially, company stores will be used. Later on, the franchising model will be used. By

    looking at the franchising models used by all the fast food chains and other restaurants,

    we can see that it is highly successful and can be used to grow in the US.

    Competition

    The environment is tough. There are a large variety of fast food chains competing in the

    US. The likes of Burger King, McDonalds, Wendys and Subway all operate in the US

    market. Each chain has a unique selling proposition attached to it. Policies need to be

    such that they set our product apart from the competition.

    United Arab Emirates (UAE)

    Market Size

    Most of the population in the UAE comprises of expatriates. The size of the market

    amounts to approximately 4 million people (Bureau of Near Eastern Affairs, 2006). The

    total population is 4.3 million out of which 50% are South Asians. So we will also

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    include the Arabs. Even the other expatriates enjoy these foods, so a portion of them also

    makes up our market.

    Consumer Tastes and Preferences

    Since most of the market is made up of expatriates, there is a diversity of tastes and

    preferences. The large South Asian contingent here prefers spicy foods and rice. These

    foods are very popular with the local Emiratis, other Arabs and Iranians as they share

    similar cuisines. Western fast food is also popular here; there are a plethora of malls filled

    with fast food joints.

    Where is the Market Headed

    Increasing demand for international food products and rising disposable incomes are

    combining to make the Middle East a hot market for foodstuff producers and distributors

    (Strategiy, 2006). The real drivers of growth are the young generation and tourists who

    flock to the Gulf to enjoy the warm weather, shopping and other recreation. According to

    a report by BIS Shrapnel, an Australian firm specializing in economic forecasting, the

    UAE foodservice market is worth a massive US$4.36 billion (Reed Business

    Information, 2005).

    Logistics

    With the construction boom in the UAE, road transport is very easily available. Also, the

    UAEs status as a free port has turned it into an international hub for trade. The UAE sea

    ports and air ports are among the busiest in the world and the zero duty will make it very

    easy to bring in whatever is required.

    International mindset of suppliers/ mentality

    There are few suppliers available here as the UAE is not very rich in natural resources.

    But, its status as a hub of international trade makes importing very easy. Every variety of

    foodstuffs can be imported here as there are no restrictions. Meat will be purchased

    locally as it is hygienic and is available at good prices.

    Strategic Alliances for Distribution

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    The initial plan is to use company outlets in a small area. After proving successful,

    franchises will be used to sell the product. The franchise market growth rate is 27 percent

    annually in the Middle East region (All Business, 2004) and it will be one of the drivers

    of growth. Wealthy Emiratis are willing to invest in franchises because of the huge

    potential of the food market in the UAE.

    Competition

    Competition in this market is intense and the market is extremely price sensitive due to

    the high level of competition. Only chains with established international reputations are

    running well here. The major competition comprises of the local and international

    restaurants, like Ibrahim restaurant, Ravi restaurant and Indian most famous Chef

    Restaurant located in Dubai (All these types of restaurants like Sultan, Ravi, Ibrahim, and

    Indian Chefs restaurant which provides the same variety of food to its consumers are the

    major competitor).

    United Kingdom (UK)

    Market Size

    Around 4.3% of the UK population is Asian. Moreover, subject to the popularity of Asian

    foods in England, we have estimated 35% of the other British population might enjoy

    BBQ restaurant meal. Therefore our target market is about 25% of the UK population,

    which are about 13 million people (CIA World Factbook, 2006).

    Consumer Taste and Preferences

    Asian food market is experiencing vigorous growth in the UK. Dishes like Chicken Tikka

    Masala (Fell Walker, 2005) are becoming increasingly popular in this part of the world.

    People have adopted these dishes and love the spices.

    Where is the Market Headed

    The market is heading to a similar direction as the US market. Health consciousness is

    increasing, but so is the desire for good quality meals and home deliveries. BBQ Tonight

    has good prospects in this market.

    Logistics

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    The UK is similar to the US and will not present any logistical problems. There are well

    developed road, rail and air networks. London is a major international air and sea port

    and will help in efficient supply chain management

    International mindsets of suppliers/mentality

    The UKs economy is one of the most prosperous and fast growing economies in the

    world. The main drivers of this affluent economy are the numerous profitable

    multinational organizations working in the country. This is because of low barriers to

    entry and support from the British government. Thus the conducive and international

    environment for business activity will help us work effectively in the UK.

    Strategic alliances for distribution

    Like the US, franchising is very popular in the United Kingdom. Therefore, initially the

    company will sell its products through its own restaurants and distribution centers.

    However as the profitability and brand loyalty of the company increases, the franchise

    will be allocated to the local franchisees.

    Competition

    There are a number of restaurants operating in the country, which includes various

    American chains and some English ones too. Each value chain has differentiated itself

    from others players in the market by catering the needs of a niche market. Similarly, the

    BBQ Tonight will cater to the untapped needs of Asian immigrants living in UK, as few

    restaurants are serving the subcontinent food in a spicy style over the

    The next step involves selection of the most ideal country that may serve as our target

    market where the product shall be exported.

    INDICATORS UK USA UAE

    Population ** *** **

    Population Density (sq km) *** ** **

    Literacy Rate *** ** ***

    Unemployment Rate *** * **

    Wealth Index * ** ***

    GDP per capita ** *** **

    Inflation Rate (consumer prices) *** ** *

    Corporate Tax * ** ***

    Tariffs ** * ***

    Market Size ** ** ***

    Competition ** *** **

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    Communication Index ** *** **

    Infrastructure Index *** ** **

    Corruption *** ** *

    Trade Balance ** * ***

    Natural Hazard Risks ** ** ***

    Key

    *** Stars indicate favorable

    ** Stars indicate partly favorable

    * Star indicate not favorable

    COUNTRY CHOICE:

    Product would be exported to United Arab Emirates as it carries

    Fine literacy rate, a healthy GDP per capita, low unemployment rate with the

    most population density at every square kilometer supported by a healthy wealth

    index and good communication and transportation facilities.

    Standard competition in the field of food industry such as restaurants then as

    compared to India and Bangladesh thus making an opportunity for the firm itself

    to capture greater market share in less time.

    Good bilateral relations with Pakistan thus there are no political obstacles in this

    case which may not permit to export the product to UAE

    OTHER VARIOUS REASONS ARE:

    Strong growth in the restaurants sector.

    Proximity to Pakistan.

    No restrictions on free trade.

    Large South Asian expatriate community.

    Consumer preferences geared towards restaurants.

    Zero rates of taxation.

    Easy to forge strategic alliances due to support from the UAE government.

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    Logistics will be handled extremely well

    BBQ Tonight meals serves as an international food item can be tested in a

    multicultural and cosmopolitan place like the UAE.

    Will serve as an indicator of future performance in other international markets.

    SITUATIONAL ANALYSIS

    Demographics

    The median age of the UAE is 27 years. Males outnumber females in the country,

    especially among the expatriate population. There are 2.6 males for every female in the

    UAE. The majority of the expatriate population is from South Asia (HSBC, 2004). Men

    are older compared to women. The majority of the population lies in the age group of 20-

    44. As mentioned earlier, our focus is on the South Asian population, which represents

    about 50% of the population of the UAE.

    What is equally important for us is the breakdown in terms of occupation. About a

    million manual labourers are employed in the UAE (NRI Online); most of them belong to

    India, Pakistan, and Bangladesh. The emirate of Dubai itself has 300,000 workers in the

    construction sector alone (Muslimedia, 2006). Hence, workers working within medium

    wages will be able to afford BBQ tonight meals.

    Economic

    The UAE is largely dependent on oil for its revenue. Recently, it has started to hype itselfas a tourism, transport, business and communications hub for the entire Middle East

    region. Abu Dhabi and Dubai are the economic powerhouses of the UAE, with Abu

    Dhabi contributing 61.1% of GDP and Dubai 24%. Abu Dhabi holds 94% of the UAE's

    total oil and gas reserves, which account for almost 10% of the world's total and are

    predicted to last about another 100 years (Oxford Business Group).

    With a GDP per capita of $29,100, the spending power of UAE citizens is quite high. The

    governments of the emirates of Abu Dhabi and Dubai are the most active and rich

    governments out of the seven total emirates. They are turning towards tourism and

    opening up their borders.

    Dubai has been an innovator. It has created an internet city and a media city and has

    positioned itself to move beyond oil dependence. It has become the number one choice

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    for professionals to work. Many large MNCs have set up their regional bases there. The

    Dubai Port and Dubai Airport are regional hubs of transport and trade.

    Political

    UAE consists of seven emirates, each having its own ruler. The federal government has

    given autonomy to the states in dealing with affairs like control of minerals, rights and

    budget allocation. The President of the UAE is Sheikh Khalifa bin Zayed Al Nahayan,

    the ruler of Abu Dhabi. He is assisted by the Prime Minister Shaykh Maktoum ibn Rashid

    l-Maktoum, the ruler of Dubai (Kjeilen, 2004).

    UAE is a monarchy, but, several steps are being taken to democratize the country. Sheikh

    Khalifa bin Zayed , has announced that half of the members of Federal National Council

    will be elected by a democratic process, where as the other half will be appointed by theruler himself (UAE Government Online). The ruler has also taken a number of steps in

    modernizing and educating the masses and providing assistance to international

    companies working in the country. Thus, the political situation is perceived to be stable

    and conducive for the corporate sector.

    Cultural

    UAE civilization is deeply rooted in Islamic traditions. However, life styles, preferences

    and attitudes of the people have changed over time due to the influx of foreigners. There

    are a multitude of shopping malls, restaurants and apartments. The culture is evolving

    into a modernist culture, especially with the construction boom and the rapid rise of the

    MNCs in the entire Middle East region.

    Legal

    The UAE is a booming economy partially due to the rising oil prices and partly due to the

    liberal economy with minimum legal hassles. The import duties are low in general and

    nonexistent for the products like food, medicine and agriculture. Restrictions on revenue

    transfer and capital repatriation is also nonexistent. Authorities have also nullified both,

    the corporate and personal taxes, and have made a considerable effort in reducing

    requirements and paperwork involved for establishing new businesses. Excellent

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    economic integration. However, since we are engaging to start a small scale company

    export and import strategy will be most appropriate for us.

    Quality Control

    The term quality control has been around for a long time, and it is a major function of

    production and operations management. It allows the company to improve its product

    quality on regular basis and it also discusses the ways of improving the quality of work.

    In our case BBQ tonight is monitoring its employees for how the services are given to

    customers, how the meal has been prepared also suggestions card will be on the table for

    the remarks and feedback about the meal and how can it be improved.

    Internal Firm Organization

    The current functions will stay the same, with only one addition. An International

    Division (ID) will be set up. The ID will have its offices in Karachi, where the Head

    Office is located and the UAE Office will report directly to the ID.

    The UAE Office will comprise of our Pakistani employees and also local Emiratis. The

    induction of local Emiratis will inject local know how into our operations. They will

    bring in local expertise and will have the networking to liaise with authorities and local

    suppliers and vendors.

    Performance Measure

    As the management is already strong there will going to be little improvement to monitor

    the quality of meal at every stage to insure that the quality of the meal does not vary.

    Food quality and food safety is our major concern; customers coming in our restaurant

    will be assure that food given them is fresh and healthy. However, this table will give an

    insight of our food safety.

    Constructs Example of Issues

    Safety Standards of hygiene in food manufacture

    Safety of food additives

    Availability of information on food safety

    Health and Nutrition Reliability of nutrition claim

    Nutrition quality of processed food products

    Cost Price relative to peoples income

    Relation between price and food quality

    Taste Modern methods of food processing and the taste of

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    food (Taste of food today compared to the past)

    Emphasis of appearance of food over taste in food

    marketing

    Choice of food Availability of traditional foods

    Personnel Strategies:Experience and expertise of existing PersonnelPersonnel working in Abu Dhabi and

    Dubai restaurant will be imported from Karachi, because these personnel are experience

    and have good expertise in making and serving the food.

    Labor

    In view of the fact of increasing the production will need more expert labors in order to

    meet up the requirements of the foreign market.

    Training needs of existing personnel

    Training plays a vital role in all type of business. BBQ tonight will be training all of its

    employees frequently to keep the quality standards of food and services on its best. The

    reason the training is important is because they will learn the new ways of preparing

    dishes, way of serving dishes, more appealing appearance of food, and also how to

    communicate with its customers.

    Hiring needs in the short term and long term

    Hiring will be required according to the conditions; if restaurant is in need of more

    employees or we have start working on larger scale only then new employees will be

    hired and will be given training.

    Market Decision:

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    Transportation and Distribution

    Initially, the areas where we will function are Dubai and Abu Dhabi. Being the two most

    populous emirates and also housing the largest South Asian populations, these emirates

    present the ideal opportunity for our business to launch itself.

    Transportation for our specialized spices will be easily arranged and we will use our own

    truck to transport them to our kitchen. We will purchase one truck to use for our transport

    purposes. As demand for our product rises, we will consider purchasing another vehicle if

    it remains feasible. Distribution of BBQ Tonight meals will take place through

    motorcycle. Where the need arises for a large order, we may even use our transport vans.

    Bikes are quicker and can navigate easily through the ever increasing traffic of the

    burgeoning cities of Abu Dhabi and Dubai.

    Controls

    Controlling is the process of monitoring organization activities so that actual performance

    conforms to expected organizational standards and goals. BBQ Tonight Monitor its

    employees, resources using for input, defects found etc. Control is actually closely linked

    with planning, organizing and leading which helps in adjusting our business performance.

    Also it lets us to overcome our obstacles, problems and opportunities. Our company

    focuses to achieve its goals and objectives in minimum time so that we can expand our

    business and get more opportunities to rise in the industry.

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    Determine

    Areas to

    Control

    Establish

    Standards

    Compare

    Performan

    ce

    Measure

    Performan

    ce

    Standard

    Met or

    Exceeded

    Standards

    not met

    Take

    Correct

    Action as

    Recognize

    Performan

    ce

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    There are also opportunities that controlling highlight in which things are going better

    than expected for example better performance from our employees, suppliers and better

    output etc.

    BBQ Tonight monitor on all the areas and determine where controlling is required. There

    are many areas to control in our business and it is expensive and impossible to control all

    the aspects of our company. Measuring performance, establishing standards, taking

    corrective action when necessary is a hard work thus we give closer look on those

    controls which are very important in our company such as finding out performance of

    employees and suppliers are they motivated, are they satisfied working with us keeping

    them motivated and providing them incentives will allow us to keep our employees

    performance maintains. In a similar way we have to control all of our marketing actions

    like advertising, sales promotions etc. so that we could be the best in the food industry.

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    Adjust Standards and

    Measures as Necessary

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    Financial Decisions:

    Financing and credit arrangements

    Initially, we will generate funds internally. Money will flow from our head office to the

    ID to finance their activities. Since BBQ Tonight has never ventured outside of their

    home operations in Karachi, excess funds have accumulated over time. These funds are

    enough to initiate and sustain operations for the first year, after that, we will rely on

    external financing. For this, we can liaise with a number of Pakistani banks operating in

    the UAE, namely MCB, Habib Bank AG Zurich and Habib Bank Limited.

    Islamic Banking

    Modern banking system was introduced into the Muslim countries at a time when they

    were politically and economically at a low, in the late 19th century. The main banks inthe home countries of the imperial powers established local branches in the capitals of the

    subject countries and they catered mainly to the import export requirements of the foreign

    businesses.

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    The banks were generally confined to the capital cities and the local population remained

    largely untouched by the banking system. The local trading community avoided the

    foreign banks both for nationalistic as well as religious reasons. However, as time went

    on it became difficult to engage in trade and other activities without making use of

    commercial banks.

    With the passage of time, however, and other socio-economic forces demanding more

    involvement in national economic and financial activities, avoiding the interaction with

    the banks became impossible. Local banks were established on the same lines as the

    interest-based foreign banks for want of another system and they began to expand within

    the country bringing the banking system to more local people.

    Interest-free banking as an idea

    Interest-free banking seems to be of very recent origin. They have recognised the need

    for commercial banks and the evil of interest in that enterprise, and have proposed a

    banking system based on the concept ofMudarabha - profit and loss sharing.

    Current practices

    Generally speaking, all interest-free banks agree on the basic principles. However,

    individual banks differ in their application. These differences are due to several reasons

    including the laws of the country, objectives of the different banks, individual banks

    circumstances and experiences, the need to interact with other interest-based banks, etc.

    Financing

    There are four main areas where the Islamic banks find it difficult to finance under the

    PLS scheme:

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    a) Participating in long-term low-yield projects,

    b) Financing the small businessman,

    c) Granting non-participating loans to running businesses, and

    d) Financing government borrowing. Let us examine them in turn.

    CONCLUSION

    BBQ Tonight has an open opportunity to serve out to the Abu Dhabi and Dubai Market

    due to:

    Strong growth in the restaurant sector

    No restrictions on free trade

    Consumer preferences geared towards restaurants.

    Huge number of people who can actively become there targeted customers.

    In order to export the product to the targeted market Company may need to

    Manage its internal operations accordingly so as to carry on its export operations.

    Adjust its marketing mix accordingly and concentrate mainly on its sales and

    promotional activities as marketing a product in urban areas is not an easy job where

    there is so much competition in the food industry.

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