Ruwad - English - Jan_Mar - 2010

TUTORIALS

ENHANCE PRESENTATION SKILLS

TOP SHOT

AQEEL A. MUNAM SULAIMAN

FOR THE NEXT GENERATION OF BUSINESS LEADERS

BEST PRACTICES

COMPETITIVE ANALYSIS

JAN - MAR 2010 An Alam Aliktisaad Wala’mal

P r e s e n t a t i o n

RESTAURANT

YOUR BUSINESS TO BE ON TOP OF THE TABLE

January-March, 2010

From The Editor’s Desk Are you there?

Wish you a very Happy and Prosperous New Year!

The market conditions were quite hostile in 2009. Like large corporations, small to medium entrepreneurs were under tremendous pressure to remain afloat.

Though 2010 is expected to be better but the businessmen have to remain extra cautious to protect their business interests. In such an environment, it is very important to ensure that every aspect of your professional behavior is oriented towards maintaining and strengthening your goodwill and trust in the market.

CONCEPT Akshay Bhatnagar

Production Manager Govindaraj Ramesh

CONTENT Sunil Fernandes Fatma Al Arimi Mohammed Fahmi Ghalib Abdullah Al Fori

MARKETING Business Head - SBU Kush Gupta

DESIGN Art Director Sandesh S. Rangnekar Designers M. Balagopalan Khoula Rashid Al Wahaibi Aliya Saif Al Wahaibi Senior Photographer Rajesh Burman Photographer Sathya Das

Marketing Team Sanjeev Rana Jisha Velluvan CORPORATE Chief Executive Sandeep Sehgal Executive Vice President Alpana Roy Vice President Ravi Raman Senior Business Support Executive Radha Kumar Distribution United Media Services LLC

Ruwad Branding Partner

Published by United Press & Publishing LLC PO Box 3305, Ruwi, Postal Code - 112 Muscat, Sultanate of Oman Tel: (968) 24700896, Fax: (968) 24707939 Email: publish@umsoman.com All rights reserved. No part of this publication may be reproduced without the written permission of the publisher. The publisher does not accept responsibility for any loss occasioned to any person or organisation acting or refraining as a result of material in this publication. Alam Aliktisaad Wala’mal accepts no responsibility for advertising content.

Copyright © 2010 United Press & Publishing LLC Printed by Oman Printers Correspondence should be sent to: Ruwad, United Media Services PO Box 3305, Ruwi 112, Sultanate of Oman. Fax: (968)24707939

An Alam Aliktisaad Wala’mal Presentation

Sometime back in a public forum, an industry luminary commented that though bulk of the companies are owned (in numbers) by the entrepreneurs but when they are needed they are never there. It shows the lack of understanding among the entrepreneurs to build and reinforce their reputation in the market. Simple things like honouring your commitments such as making himself available as per schedule when given an appointment to a person also counts. Many times we hear people saying, ‘When we went to meet the person in his office as per the appointment, he wasn’t there. He didn’t leave any message nor anybody knew where he was or when he was expected back. When you call or send sms on his mobile, he didn’t bother to take the call or reply back”.

It is not a healthy practice. It takes a long time to build a good image but it takes just one step or few seconds to destroy it. Those entrepreneurs who want to make it big and have long term goals should ensure that they not only stick to their commitments but raise the benchmarks to delight the internal and external community with their behaviour. Moving on, in this issue, we look at the restaurant industry to find out the current trends in the market and understand the potential opportunities and threats by talking to some of the stakeholders.

Enjoy reading the issue and send us your feedback.

Akshay Bhatnagar akshay@umsoman.com

CONTENT INSIDE NEWS ���������������������������������������������������2 COLUMNS

By Said Al Sahib �������������������������������������������5

By Abdullah Al Jufaili �����������������������������������7 Cover Story ���������������������������������10 Restaurant Business

Top Shot �����������������������������������������15 Aqeel A. Munam Sulaiman

Successful Entrepreneur ���������16 Mixing Colours Tutorials �����������������������������������������18 Enhance your presentation skills

Best Global Practices ���������������20 Competitive Analysis Ask the Expert �������������������������������22 Franchisee – To be or not to be?

1

For the Next Generation of Business Leaders

news

Intilaaqah honours young entrepreneurS The 6th Intilaaqah Best Young Entrepreneur Awards were recognize successful young Omani entrepreneurs has evolved organized in November last year. Organized under the patronage to be a credible source to identify leading small and medium of HE Dr. Rajha bint Abdul Ameer, minister of tourism, the event enterprises. This was clearly visible from the competition we was attended by entrepreneurs and representatives of various have witnessed between the finalists this year.” Intilaaqah Best public and private sector organizations. Three entrepreneurial Young Entrepreneur Awards is an annual event organized by projects were felicitated in the awards event that recognizes Intilaaqah. It is also supported by Omantel, Oman Mobile, DHL, the success of young entrepreneurs and promotes nurturing of United Press & Publishing (the publisher of Ruwad) and The entrepreneurial culture.

Fund for Development Hamed Al Aghbary of of Youth Projects. “We Muscat Geo Systems, are delighted to have winner of the award partnered with Intilaaqah commented after in this prestigious receiving the awards: award. At the Fund for “We have worked hard to Development of Youth receive this recognition Projects, we always seek and we are delighted to be present in events that we made it to the related to entrepreneurial top. Muscat Geo Systems development. Certainly, is a company based young entrepreneurs in the TKM business need to be acknowledged incubator programme in to encourage them and Knowledge Oasis Muscat. others to take on the Our business officially same path,” said Hani Al “Young entrepreneurs need to be started in 2008 offering Zubair, chairman, The acknowledged to encourage them and others Fund for Development of Geographic Information Systems (GIS) solution Youth Projects. to take on the same path” to individuals, corporate and public sector organizations.” His colleague and business Over 50 entrepreneurs competed for the awards. The finalists partner, Musallam Al Rahbi added, “Being recognized in were selected based on their business portfolio, financial Intilaaqah nationwide Best Young Entrepreneur Award is a key planning, marketing strategy, leadership skills and innovation milestone in our business plan. Indeed this will encourage us to level. During the ceremony, Abdullah AL Jufaili, director, put more effort in our business and grow it further. The support Intilaaqah presented an overview of Intilaaqah’s major we have received from the organizers coupled with the advice highlights since its launch in 1995. He explained, “Our we have received from the judging panel members is very much achievement is largely due to our partners namely BankMuscat, appreciated”. The second prize winner was Bushra Al Kindy, Oman Chamber of Commerce & Industry, Oman International the owner of Little Beauty Center. The third prize winner was Bank, Sohar Aluminum, Sultan Qaboos University, Oman Air, Samah Al Wuhaibi of Layali Al Asalah.

Knowledge Oasis Muscat and Sanad Programme. Apart from the awards, we have launched a nationwide campaign with Speaking at the ceremony, John Blascos, GM Shell Development the Ministry of Education to create more awareness in schools Oman and Shell Country Chairman said, “On an annual basis, about entrepreneurship. We aim to maintain a leadership we gather to celebrate the success of young entrepreneurs. position amongst organizations that support the development The Intilaaqah Awards that started off as an initiative to of entrepreneurs.”

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January-March, 2010

COLUMN

A vision for self-employment

By Said Al Sahib

Globally, small and medium enterprises (SMEs) play a significant role as the backbone of economic life that contribute significantly to the creation of jobs for citizens, thereby raising the standard of living they enjoy.

Hence, SMEs are the mainstay of income for millions of families all over the world.

The Sultanate of Oman is known for having investor-friendly environment, attracting investors from all over the world. The country strives to provide modern infrastructure and regulatory frameworks that meet the needs of investors. Oman is also well known for its political and financial stability, a requisite for major ventures as well as SMEs. Throughout the last three decades, the Omani government has strived to encourage entrepreneurship. To this end, it established Sanad programme and the Fund for Development of Youth Projects.

The initiatives have encouraged a sizeable number of Omani youth to establish their own ventures. Many Omanis, who believe in entrepreneurship, benefited considerably from the support provided by the government to Omani entrepreneurs. Many of them performed well and managed to make their small ventures a success story.

In this two-part article, I will try to highlight the role played by SMEs in Oman’s

economy, especially in terms of generating job opportunities. I will also highlight the strategic options for doing business and provide a vision on how to Omanize a number of professions. I will provide a SWOT analysis (an analysis of strengths, weaknesses, opportunities and threats) followed by recommendations and action plan.

The importance of SMEs

SMEs play an important role creating a considerable number of job opportunities in sectors that are labour-intensive. This means that the sector has the ability to absorb a large number of Omani and non-Omani job seekers that move the economic cycle in the country which in turn enhances the growth of our economy. SMEs, thus, play an important role in: yy Increasing competitiveness of the national economy. yy In becoming viable sources for innovation as they are highly flexible and dynamic in meeting the needs of major companies. yy Helping major ventures to grow and become more competitive. yy Contributing to create social integration and balance.

Therefore, SMEs that constitute the bulk of business community bring multiple benefits for employees, customers, suppliers and service providers.

SMEs play an important role creating a considerable number of job opportunities in sectors that are labour-intensive 5

For the Next Generation of Business Leaders

news

BankMuscat business incubator for women

SME Exhibition & Conference in Feb The second Small and Medium Enterprises Exhibition & Conference titled ‘Financing SMEs’ will take place during 16-18 February this year at Oman International Exhibition Centre, Muscat. The event is a joint initiative of the Ministry of Commerce and Industry, Oman Chamber of Commerce & Industry (OCCI), exhibition organizer Trifoil Expo and conference organizer Envent. The event is aimed at highlighting the financial opportunities and challenges of SMEs in Oman with discussions and workshops addressing some of the key hurdles facing this business sectors in the Sultanate, said Yousuf bin Yaqoob al Busaidy, chairman of Entrepreneur Forum.

BankMuscat has initiated a business incubator programme to transform local communities and benefit Omani women, including housewives from low-income and middle class families. It will facilitate a work environment conducive to projects which are usually difficult to start outside. Shaima Al Lawati, Head of CSR, BankMuscat said: “The main objective of the BankMuscat business incubator is to produce successful firms that are financially viable and free-standing. Its services will be offered to Omani women who possess the basic skills related to their business idea but require training and support to enhance their start-up ventures. The business support process is aimed at accelerating the successful development of start-up and fledgling companies by providing entrepreneurs with an array of resources and services.”

YAL Innovation and Entrepreneurship Programme

In its efforts to build the capacity of young Arab entrepreneurs, Young Arab Leaders (YAL), the pan-Arab platform committed to increasing the employability of Arab youth through quality education and entrepreneurship programmes, has launched its Innovation and Entrepreneurship Programme in partnership with The Dow Chemical Company through its charitable arm, The Dow Chemical Company Foundation, and the Dubai International Financial Centre (DIFC) Centre of Excellence (CoE). For more information, visit www.yaleaders.org.

4

The event is expected to bring together government representatives, business leaders, academics and professionals to explore the development of small and medium entrepreneurship, best practices in corporate governance and the economic environment for the next generation of entrepreneurs. Eminent regional and international speakers will identify the key issues in finance, current and future opportunities for SMEs; workshops and expert panel discussions will focus on creating an entrepreneurial culture in the region and address funding gaps. Ruwad is a strategic partnership for the event.

good response to SME

The Small and Medium Business Mega Event, supported by Suhail Bahwan Automobiles, drew a decent response despite adverse weather conditions. The two-day event conducted in December was supported by other industry stakeholders including Intilaaqah, Sharakah, Alam Aliktisaad Wala’mal and Ruwad beside others.

January-March, 2010

By Abdullah Al Jufaili

column

Netpreneurs – The new breed of entrepreneurs With increasing awareness of the Internet and growing popularity of internet shopping and procurement, there are ample opportunities for the entrepreneurs to set up and run their net based business successfully

Many major ventures that currently generate millions and billions of dollars in revenue started from just a simple web page or site on the internet. Take for example, the search engine Google or e-auction market eBay or social network platform Facebook. In the beginning, they didn’t need large equipments or huge financial investments as these projects were based mainly on internet technologies. The nature of such projects depends mainly on the kind of service or product you are going to render. Generally speaking, such projects fall in the following categories:-

Provide service or sell information

Providing specialized information through the internet at a reasonable cost may be one of the easiest projects as the owner of the project does not need a source for production, storage or courier it to the buyer. A good example of these projects is the translation service. The entrepreneur needs only a website through which he can provide the translation services to his customers. From the technical perspective, such kind of websites could be developed quite easily.

visitors every day. They make huge amount of money by selling the ad space on the site to marketers who want to reach out to these visitors.

Exchange for buyers and sellers

Sell products The selling of products through the internet comes in at the second place if we look at the ease aspect in setting up such kinds of enterprises on internet.

The netpreneur may sell products that are either not or not easily available in the market. These products may not need large storing space. These web sites should be offer e-payment facility to the consumers through credit cards, e-banking or such kinds of alternative electronic methods. This business requires specialized database application usage on the website for viewing product display besides a secured e-payment mechanism.

Sale of ad space

The most popular examples of these are Google, Yahoo, Hotmail, Maktoob and Gmail. These sites provide their services free of charge leading to millions of

This kind of internet enterprise is relatively complex compared to the other services. It requires legal framework in place and a mechanism that secures the rights of buyers and sellers. It should guarantee the confidentiality and security of the transmitted information. Such projects also require some investment in developing an integrated database of the products on display. The best example of such kind of a business is eBay. With increasing awareness of the Internet and growing popularity of internet shopping and procurement, there are ample opportunities for the entrepreneurs to set up and run their net based business successfully. I do hope that in the coming years, more and more Omanis will take advantage of the growth prospects in this field and become netpreneurs.

The author is Director, Intilaaqah. He can be contacted on abdullah.al-jufaili@shell.com

7

For the Next Generation of Business Leaders

COLUMN

As an illustration of the importance of small and medium enterprises in the economies of nations, a look at the figures reveal that the number of owners of trade at Organization for Economic Cooperation and Development (OECD) rose from 30 million in the 90s to 54 million in 2009. In the United States, according to data released by the Department of Commerce, the small SMEs represent 99 per cent of all employers and 52 per cent of workforce needs and thus providing 51 per cent of the output of the private sector and 96 per cent of export goods. In the EU countries, 99.8 per cent of the companies are small and medium size enterprises. In Germany, SMEs represent 95 per cent of the total companies, 70 per cent of the workforce and 80 per cent of the professionals.

The entrepreneur should focus on delivering special kind of services in a limited market as this will give the emerging company a comparative advantage 6

Countries in Asian continent are good examples to illustrate the role of small and medium enterprises in the national economy, because of the limited natural resources they had in the past decade. Taiwan is an ideal example of the great role played by SMEs in the growth of its national economy. During the last decade, the country has placed itself well at the world map as a provider for a wide range of configurations and electronic products and accessories, and accounted for small enterprises of great importance, representing 96 per cent of the total number of companies and 69 per cent of the total workforce and 55 per cent of Taiwan’s manufacturing.

Strategic options for businesses

It is mandatory for any enterprise to have a clear vision and strategy for realizing its goals and thereby consolidate its position in the industry. The entrepreneur or the Executive Director should make the employees aware of this vision and strategy. They should all work towards materialization of the

goals of the organization and maintain its competitiveness in the market by providing high quality products at competitive rates. Good organization is the bedrock of successful large enterprises for which a welldefined strategy has to be in place. These institutions have emerged to live up to a high level of efficiency, employ good governance and develop their businesses through the application of modern management methods and techniques.

Small businesses often operate in limited markets to provide products or services. In this sense, in the short and medium term, nobody would expect these companies to attach high priority to developing a clear-cut strategy, as is the case in big business. Still, such strategy is the main engine for the future development and growth of any business.

Therefore, the founder of the venture is responsible for conducting market research and finding solutions to any challenges facing the emerging business. To be precise, the owner of the business is responsible for ensuring the development and growth of his business. He, therefore, should focus on delivering special kind of services in a limited market as this will give the emerging company a comparative advantage.

Omanis should be encouraged to enter technical professions such as carpentry, paints, mechanics, electrical and plumbing works, as it has been the case with foodstuff sale. We should therefore have a clear vision on how to encourage Omanis to take up these professions and replace the expatriate workers who are at the helm of these jobs at this moment.

(To be continued in the next issue)

The author is the vice chairman of Fund for Development of Youth Projects (Sharakah).

January-March, 2010

COVER STORY

The outlook for the restaurant sector is very bright as growth of domestic tourism is expected to provide further momentum. There is a growing trend towards outings in the weekends which indicate a shift in the lifestyle pattern.

The younger generation (18-30 years) is the harbinger of this transition.

The youth tend to spend more time in the restaurants and cafes. When this

Total Number of Restaurants and Cafes in Oman

3813

AL WUSTA – 16 (1%)

MUSANDAM – 20 (1%)

AL BURAYMI – 56 (4%)

AL DHAHIRAH – 97 (5%)

AL BATINAH – 267 (20%)

AL DHAKHLIYAH – 22 (1%)

MUSCAT – 314 (21%)

Interestingly, even though Omanis constitute majority of the population in the Sultanate but the number of restaurants serving Omani cuisine is relatively low compared to restaurants serving non Omani cuisine. Omani cuisine oriented restaurants are generally concentrated in locations primarily meant for tourists.

DHOFAR – 1317 (39%)

Overall, the total number of restaurants and cafes in Oman stands at 3813, according to data provided by Oman Chamber of Commerce & Industry (OCCI). The data may not be completely accurate or updated but it gives a fair picture of the industry. On an average, there is one restaurant for every 720 inhabitants. The southern part of the Sultanate has the highest concentration with a tally of almost 1472 restaurants.

On the other hand, al Wusta region is the most underserved region in terms of numbers of restaurants.

AL SHARQIYAH – 146 (8%)

Restaurants by region

Industry scenario

Restaurants by activity Restaurants

Fast food shops

Cafes

Juice & Ice cream shops

Other activities

Total

Muscat

314

6

453

25

4

802

Dhofar

1317

2

125

13

15

1472

Al Dhakiliyah

22

–

22

6

–

50

Al Batinah

267

2

477

4

–

750

Al Sharqiyah

146

2

160

7

2

317

Al Dhahirah

97

–

72

4

1

174

Al Buraymi

56

–

96

–

14

166

Musandam

20

–

33

3

–

56

Al Wusta

16

–

10

–

–

26

Region

11

For the Next Generation of Business Leaders

COVER STORY

Restaurant Business – On Top of the Table Mohammed Fahmi looks at the state of restaurant business in Oman from the SME perspective apart from speaking to three successful Omani entrepreneurs who have made a mark in this field

No matter what is the state of economy – boom or recession – one business that never fails to survive and thrive is the restaurants provided one has properly cracked the business focus and key differentiators. Oman is also not an exception. The residents of Oman – nationals as well as expatriates alike – like to step out of their home and eat out quite frequently. Whether it is a small time coffee shop in a business place such as CBD or an Arabic restaurant in Al Hail or a multi cuisine restaurant in Sohar, it is not surprising to see them doing brisk business.

Ghada al Harthy owner of Café G 10

As a result of the above and government’s focus on promoting tourism, the restaurant business has emerged as one of the most promising sectors in Oman. Though large companies have a strong hold on the business but numbers of small and medium entrepreneurs have also made a mark with their strategic focus, innovative approach and most importantly perseverance to make it despite odds.

January-March, 2010

COVER STORY

CHALLENGES >> In the interiors, people tend to consume home cooked food and the degree of ordering food from a restaurant is low

>> The cost of operation is high as many inputs such as meat, bread and vegetables are imported.

>> The Omani youths are less interested in working in restaurants.

>> The local authorities have strict restrictions on recruiting foreign nationals.

decision to start a restaurant as I was afraid that I don’t have experience in this business.”

Mohammed bin Ali al Magrafi owner of Maazeem Restaurant for Traditional Food, Rustaq

in knowing and observing about the cuisines served at the restaurants and the quality standard they maintained.

This helped me a lot when I was planning my restaurant. My restaurant serves Turkish, Indian and Yemeni cuisines.”

Background not a must

On An Average Every Restaurant Project Cater To

Higher No. of Restaurant Projects – Southern Oman

720

People

Is it necessary to have a firsthand experience before you venture into a restaurant business? It is a tricky question as different people have different viewpoints. Mohammed said, “It took me quite a long time to take a

1472

Amer, on the other hand, had some exposure to the business. “My father had a small restaurant in the Ministry of Information. Along with my brothers, I used to help my father in managing the operations. In those days, it was very easy to start a restaurant but now the scenario is completely different due to the higher cost of rent and workforce,” said Amer.

Having worked in Emirates Airline’s customer service department, Ghada had a rich exposure of the hospitality industry before taking a plunge in the restaurant business. “My mother used to work in hotel management. This gave me a momentum in the beginning. But I faced a number of setbacks and through experience I’ve learned how to plan well to be successful.

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For the Next Generation of Business Leaders

COVER STORY

DRIVING FACTORS >> The growth in the number of tourist is creating more investment opportunities in the field.

>> The number of restaurants serving Omani cuisines is relatively low which means there is a lot of potential in this segment as growing number of tourists would like to experience and consume local ethnic cuisine.

>> The growth of domestic tourism will add further momentum to this sector.

>> The change in the lifestyles and tendency towards outings during the weekends will make the business more lucrative.

>> The majority of the local population (aged between 1830 years) spends lot of time in restaurants and cafes.

segment is going to start earning and move up in corporate hierarchies, they will carry this culture with them which will create more business opportunities for setting up of new restaurants and expansion of the existing lot.

Ruwad spoke to three different restaurant entrepreneurs who share their experience of starting and running the businesses apart from the opportunities, threats and challenges which impact the restaurant business in their opinion.

Know your niche

As we spoke to them, we found that

12 12

it is very important to identify your niche in the market. If you have a me too kind of a restaurant than odds are against you as you will be competing with other restaurants without any key differentiator to attract customers. Eng. Amer bin Said al Dabouni , owner and manager of Um Al Zamayim restaurant in Al Khoud shared his experience: “I started my venture 15 years back. My restaurant resulted as an initiative to plug the gap in the market – absence of a traditional restaurant that serves Omani cuisines in the area. Many Omanis were sourcing their needs from Indian, other Asian and European restaurants as they didn’t have any option”. It was a good strategy on the part of Amer as the locality where his restaurant is situated has a very high degree of Omanis.

If Omanis were the core target group for Amer, it was the other way round for Ghada al Harthy. She is the owner of Café G which she started in 2006. “Though lots of entrepreneurs think of catering to the needs of the Omani customers but I have done the opposite by opening a café that meets the needs of different expatriate communities here. My café meets the taste of Indian, other Asian, European and American communities in Oman.”

community. It is not easy to create a restaurant for a community without knowing about their preferences and unique requirements. That was not a handicap for Ghada as she spent her childhood in UK which came in handy in identifying the needs of expat communities in Oman. Apart from the food, location is the key as evident in the case of Café G. Mohammed bin Ali al Magrafi, the owner and manager of Maazeem Restaurant for Traditional Food located in Rustaq will also vouch for it. Why Rustaq and not Muscat?

Mohammed replied: “I dreamt of opening my venture in Muscat but the plan could not turn into a reality due to a number of factors such as higher rentals and cost of operations. Rustaq is a good option as the new paved road that connects it to Ibri is witnessing a growing traffic movement which in turn increases the demand for my products.

Moreover, this road also links Rustaq to Muscat and is used by many visitors to UAE as it cut short the distance to Dubai”. The funding for the project was majorly supported by Sharakah.

She opted for Madinat Sultan Qaboos for the location of her café as the place is a favorite among the expat

He added, “When I opened my restaurant in 2009, I was very much influenced by my experience while staying as a bachelor in Muscat. I used to get most of my meals from restaurants and coffee shops. I was interested

Cafes in Muscat

Total % of restaurants projects in Oman located in Dhofar

453

40%

January-March, 2010

TOP SHOT

Business leader who shoots with precision Starting his career in a renowned global firm to spearhead his family business with great success, Aqeel A. Munam Sulaiman has come a long way. Mohammed Fahmi profiles the dynamic 37-year old CEO of salmancorporation

Academic and Professional Background I received my degree in 1995 from UK after which I obtained ACCA certification in 2001. I started my career with KPMG, one of the globally renowned names in the field of accounting and auditing.

I worked for about four years in their Muscat branch and another two years in London branch. When I came back to Oman, I joined the State Reserve Fund at the Ministry of Finance as an investment analyst. After three years, I moved to National Bank of Oman (NBO) for one and half year. After that I felt it is time to join my family business. I started as a finance manager and thereafter was promoted to the position of CEO of the company.

About salmancorporation

For over five decades, salmancorporation has been the holding company of various successful ‘Salman’ companies, representing a wide gamut of the best brands of international

repute along with its own products.

The company currently consists of salmanstores (3 branches), salmanproperties, Salman Hotel and Restaurant Equipment (12 outlets), City Watch (one outlet in AlAraimi Complex and five will be added soon at all Center Point branches), Pizza Inn (two restaurants) and Caribou Coffee.

Hobbies

I am interested in photography since school days but I couldn’t devote time to it due to my commitment to professional assignment. But I have started giving it the due attention for the last three years. I’ve published some of them on my website www. aqeelgallery.com

Next goal

I am planning to make Salman a very well known brand and number one choice for the shoppers. The goodwill that we enjoy in the market based on our good track record of quality and innovation is something that I would like to maintain and take it to the next level.

15

For the Next Generation of Business Leaders

COVER STORY

Not an easy ride Even if you have a good idea and the location, your success could be determined only if you manage to successfully run the restaurant over a period of time by overcoming all the challenges. Though there are issues such as higher cost of raw materials and the tendency to eat more at home in the interiors, but the biggest issue that affects the restaurant business is lack of local talent and positive attitude towards the business among the Omani youth.

Lowest Number of Total Restaurant Projects – al Wusta Region

26

Mohammed shares his experience: “As for as Omanization is concerned, I have an accountant, a supervisor and a driver for home delivery services. So we are about four Omanis out of 11 member staff. Omani youths are not willing to work as a cook or do home deliveries. Even if we find someone who accepts to work in these areas, it will be a temporary arrangement till he gets another job. To make the matters worse, many Omani youths quit the job without notice thus putting the employer in a very tight position as we are a service oriented industry where quality customer service delivered on time is a must.” He adds, “I believe that Omani youth needs to be imparted more training to help them in acquiring more skills. There should be also a

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Eng. Amer bin Said al Dabouni owner of Um Al Zamayim Restaurant, Al Khoud

legal framework that binds the Omani employee to work for the employer for at least one year.” Amer throws more light on the subject as he says: “While the turnover rate for Omanis is very high, they are very skilled. The Omani workers I have are very dedicated and hard working. I wish if I could make the Omanization rate 100% but unfortunately not many Omanis have interest to work in the restaurant business. The problem is that most of them prefer to have clerical jobs.” “From the beginning my focus has been to provide Omani cuisine made by Omani hands. This has helped us to distinguish ourselves from others as we have a

better ability to identify the needs of our customers. Our success in some cuisines has encouraged us to make more options for our customers such as Omani Shiwa’, Omani Biryani, Qaboli, Bukhari rice, Mandi, rice with sapphire, Thareed, Harees and many other cuisines that were not served before. Even if you have similar dishes, they do not carry the true Omani taste we provide in our products!”

Ghada’s advice to the restaurant owners: “The more you stick to quality products, the more will be the turnout for your products. We should also keep pace with modern developments taking place in the market.”

January-March, 2010

SUCCESSFUL ENTREPRENEUR

accounting, budgeting and material sourcing etc. conducted by reputed organizations including Oman Chamber of Commerce and Industry and SME directorate in the ministry of commerce & industry. I benefited a lot from them as they provided me with an in depth understanding on how to establish and manage a small business.

The shop that I own now was very simple in the beginning. After buying it, I revamped it completely and continue to add new features to it. The shop now has a workshop for mixing paints and doing the paints work. In the beginning, I used to play the role of a promoter, manager and salesperson of the shop.

Now, I have appointed different agents in different parts of the Sultanate for promoting our products and ensure timely delivery for all customers’ needs.

I maintain co-ordination with the paint suppliers and ensure smooth delivery to the customers in any wilayat.

Why mixing colours

I was always very passionate about by mixing colours with each other and creating new colours. My main interest has been on the home décor front; I’m also very much interested in large size vases painted in bright colors. We have product catalogues that provides the customers with a wide range of options to choose from. Sometimes, the customer may have certain special requirement for his home décor. We listen to his need and understand his taste to convert his ideas into a reality with our tailor-made solutions.

Our technicians visit the house of the customer and develop a work plan accordingly. We have already executed a

number of décor works for many houses in different parts of the Sultanate. We use quality paints of highly reputed companies only.

Sometime we face a problem with our suppliers. For example, some companies that have an exclusive contract with us to distribute their products in the wilayat start selling through other shops also. We take up the issue with them to abide by the contractual obligations as per their agreement with us. Through this article, I request the ministry of commerce & industry and other competent authorities to intervene in such unethical practices and ensure that the distribution for paint products are done by authorized dealers only.

Many people ask me why I chose this location for my shop. I needed a shop that had a large space to accommodate a workshop for mixing paints and painting

work. This shop was perfect for this.

I’m planning to expand my business further by opening a shop in Azaiba.

While selecting the location of your venture, it is very important to conduct a market study and develop a very good understanding of your potential competitors. I chose this location as there was a lack of competition when I started the business and secondly, it had ample space for future expansion.

Advice to Omani youth

All young people should have an entrepreneurial spirit in them. It needs a lot of hard work but it is profitable and opens a plethora of opportunities for growth. You may start with even a shop for AC repair, aluminium work, carpentry, metal work or similar projects. But before opening a venture, the entrepreneur should undergo a good course or training programme to acquire the required skills to start and manage his project successfully.

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For the Next Generation of Business Leaders

SUCCESSFUL ENTREPRENEUR

Moosa bin Sulaiman al Adawi, a successful entrepreneur running a paints business, is a great success story that could inspire Many Omani youth. In a talk with Ghalib al Fori of Ruwad, Moosa shares his success journey in his own words

To start with, I’m a resident of Al Khadra in the wilayat of Bahla. After completing the secondary school, I was not looking for a job like rest of the young people.

My goal was to go beyond that and ‘be my own boss’.

My brother owned a shop for selling paints. I used to go there every day to gain experience on managing sales and dealing with the customers. My brother who was working with a government organization left the management of the shop in my hands in his absence. I liked playing the role of managing the show

and introduced number of changes in the shop which led to the increase in business.

Training before venturing

Then I heard about Intilaaqah programme and decided to benefit from the courses provided by them. I was not seeking funding for my venture but the objective was to gain from their highly educative workshops and training programmes. I also attended other courses and development sessions in various aspects related to business management such as computers,

Mixing Colours

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January-March, 2010

TUTORIALS

and emphasize your points when talking to financial types. Images can contribute more to the success of your presentation then words.

Telling Stories

Tell stories. Paint word pictures that create images in the listeners’ minds.

If they can see it they are more likely to understand and remember your message. The best public speakers are storytellers. Use stories and anecdotes to illustrate and reinforce the main points of your presentation. Learn to master the skill of storytelling. Listen to newscasters, entertainers and other speakers.

The best stories are personal. Because they are yours - they are easier to remember and they make your presentation unique. We listen to stories. We hate lectures. Rehearse your stories to edit them down into a short story that is easy to listen to.

Researching your presentation

Get your facts straight. Don’t stand there saying, “I think so” or “I’m not sure.” Don’t lie and pretend to know something you do not. So spend time collecting and confirming your information. Be careful of presenting hearsay as evidence – unless you preface it as that. Do a quick search on one or a few of the Internet search engines to find some new insights on the topic of your presentation. These Internet ‘facts’ might not be confirmable so present them as what you found – ‘Stuff from the Internet’.

Rehearsing your presentation Rehearse to get used to the feel of

“When you speak to a business group the most effective approach is to state your conclusions first, the actions required then follow with supporting information.”

delivering your presentation. The best way to reinforce a set of skills is by repeating the pattern the way you plan to deliver. Golfers and musicians rehearse their patterns so the skills of the big day are natural to them.

The fear of public speaking

Studies show that our number one fear is the fear of public speaking. Hard to believe but it is more prevalent than the fear of death. If you have a fear of public speaking or feel some anxiety you are not alone. Even great speakers like Churchill experienced this fear. But he worked on his delivery skills so he could deliver even when he was nervous.

Review your presentation and grow Ask a trusted colleague or a friend to attend your presentation and give you constructive feedback. Be specific in what you ask from them; e.g. “How well was my point illustrated? Did my humour work well? Did I connect with them?” When you ask specific questions

you will get specific answers. The most important question you can ask yourself is, “Did I make happen what I wanted to happen?” If the answer is yes – it was a successful presentation. Did they buy, were they convinced, did they march in the direction you pointed?

That is the measure of a successful speech. That is the purpose of your presentation skills in action. Also look at where you might still improve your skills. And plan to work on this before your next presentation.

When someone compliments you on the presentation be gracious and ask him or her, “What was the best idea or strongest message that you will take away and use?” You might be surprised at what they ‘heard’ versus what you ‘said’. The fastest way to improve your presentation skills is to review every presentation you deliver.

(Excerpts from ‘Speech Coach for Executives’ by George Torok)

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For the Next Generation of Business Leaders

TUTORIALS

Enhance your presentation skills A great presentation does not just happen. It is planned, rehearsed then delivered with flair. Ruwad summarizes some of the key points that could enhance your presentation skills A good presenter is one who learns the skills of presentations - not one who hopes for talent to carry them. Public speaking is a set of skills not a talent.

You can be a good presenter if you learn the skills for presentation success. You will be a great speaker if you learn from every presentation you deliver. Great presenters start as poor speakers – then they get better.

Learn from other great speech makers

Who are the public speakers you admire? Ask yourself why you admire them. What techniques do they use in their speeches that you can use?

What principles can you adapt to your presentations? It could be a great political leader, business executive or innovator. Look for the skills they use and make them your own.

Presentation structure

There are many presentation structures that you can choose from. When you speak to a business group the most effective approach is to state your conclusions first, the actions required then follow with supporting information. The most boring and ineffectual presentation style to use with a business group is the scientific method

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that many of us learned in school. The scientific method starts with a problem, followed by a hypothesis, a method, results and conclusion. That sounds logical but most people in business today do not have the patience to listen to that litany. We want the answer first.

Speak – don’t lecture.

Pain and Relief

An effective sales technique is to first reveal or describe their pain, fear or

problem. Then you offer the relief to the pain. The relief from pain and desire for pleasure are powerful motivators. Just don’t dwell on the pain too long.

Illustrating your main points

We need images to understand. A good image for the accountant and numbers type is a chart. Bankers, financial planners and money folk love charts and graphs. Use pie charts, bar graphs and piles of coins to illustrate

January-March, 2010

BEST GLOBAL PRACTICES

ther o b y Wh alyse to an etitors? comp

Some businesses think it is best to get on with their own plans and ignore the competition. Others become obsessed with tracking the actions of competitors (often using underhand or illegal methods). Many businesses are happy simply to track the competition, copying their moves and reacting to changes.

Competitor analysis has several important roles in strategic planning:

>> To help management understand their competitive advantages/disadvantages relative to competitors

>> To generate understanding of competitors’ past, present (and most importantly) future strategies

>> To provide an informed basis to develop strategies to achieve competitive advantage in the future

>> To help forecast the returns that may be made from future investments (e.g. how will competitors respond to a new product or pricing strategy?

in this industry because of superior marketing and research as well strategic partnerships with a large majority of the hardware vendors that produce

personal computers. This has allowed Windows to become the operating environment, maybe not of choice, but of necessity for the majority of personal computers on the market.

Microsoft’s primary competitor Apple has competing operating system with a great deal of marketing to accompany it; however, it suffers from weaknesses that Microsoft has been able to exploit.

Apple’s operating system for its Mac line of computers, while superior in many ways to Windows, is limited to the Mac personal computers; therefore, it doesn’t run many of the popular business applications that are readily available to Windows. This is the type of detailed analysis you need in analyzing an industry.

Through your competitor analysis you will also have to create a marketing strategy that will generate an asset or skill competitors do not have, which will provide you with a distinct and enduring competitive advantage. Since competitive advantages are developed from key assets and skills, you should sit down and put together a competitive strength grid. This is a scale that lists all your major competitors or strategic groups based upon their applicable assets and skills and how your own company fits on this scale.

To put together a competitive strength grid, list all the key assets and skills down the left margin of a piece of paper.

Along the top, write down two column headers: “weakness” and “strength.”

In each asset or skill category, place all the competitors that have weaknesses in that particular category under the

weakness column, and all those that have strengths in that specific category in the strength column. After you’ve finished, you’ll be able to determine just where you stand in relation to the other firms competing in your industry.

Once you’ve established the key assets and skills necessary to succeed in this business and have defined your distinct competitive advantage, you need to communicate them in a strategic form that will attract market share as well as defend it.

nesses i s u b t a Wh ally like e r d l u o w about to know ors: t competi

>> Sales and profits by product >> Relative costs >> Customer satisfaction and service levels

>> >> >> >>

Customer retention levels Distribution costs New product strategies

Size and quality of customer databases

>> Advertising effectiveness >> Future investment strategy >> Contractual terms with key suppliers

>> Terms of strategic partnerships 21

For the Next Generation of Business Leaders

BEST GLOBAL PRACTICES

Competitive Analysis Through your competitor analysis you can create a marketing strategy that will generate an asset or skill competitors do not have, which will provide you with a distinct and enduring competitive advantage

The competitive analysis is a statement of the business strategy and how it relates to the competition. The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors within your market, strategies that will provide you with a distinct advantage, the barriers that can be developed in order to prevent competition from entering your market, and any weaknesses that can be exploited within the product development cycle.

Spot the target

The first step in a competitor analysis is to identify the current and potential competition. There are essentially two ways through to identify competitors.

The first is to look at the market from the customer’s viewpoint and group all your competitors by the degree to which they contend for the buyer’s

20

pocket. The second method is to group competitors according to their various competitive strategies so you understand what motivates them.

Once you have grouped your competitors, you can start to analyze their strategies and identify the areas where they are most vulnerable. This can be done through an examination of your competitors’ weaknesses and strengths. A competitor’s strengths and weaknesses are usually based on the presence and absence of key assets and skills needed to compete in the market.

To determine just what constitutes a key asset or skill within an industry, David A. Aaker in his book, ‘Developing Business Strategies’ suggests concentrating your efforts in four areas: 1. The reasons behind successful as well

as unsuccessful firms 2. Prime customer motivators 3. Major component costs 4. Industry mobility barriers

According to theory, the performance of a company within a market is directly related to the possession of key assets and skills. Therefore, an analysis of strong performers should reveal the causes behind such a successful track record. This analysis, in conjunction with an examination of unsuccessful companies and the reasons behind their failure, should provide a good idea of just what key assets and skills are needed to be successful within a given industry and market segment.

For instance, in the personal-computer operating-system software market, Microsoft reigns supreme. It has been able to establish its dominance

ASK THE EXPERT

For the Next Generation of Business Leaders

ASK THE EXPERT

Franchisee – To be or not to be?

Question Rajeev Singh, Partner

I’m thinking of starting a gifts & packaging shop. Is it possible to take a franchise of a leading international brand? If yes, how the arrangement works in terms of sharing of initial investments and monthly returns between the franchisor and franchisee?

Qais Al-Raisi, Sohar

Response In order to make a balanced decision, you will need to be able to describe exactly what demand you are catering for and, if possible, quantify that demand in terms of the number of people or businesses that you think your new company will cater for.

The demand for a gifs and packaging shop will be harder to quantify as figures for such a sector do not exist. Consider instead the population as a whole and whether there is any competition in the local area. If there is competition, carry out some analysis as to pricing, service offering and quality to try to understand what your shop could do that is currently not offered. If you do not come up with a differentiator, then it probably suggests that the market is already well served and a new shop would simply increase competition and therefore reduce profit margins.

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An international partnership structure can work in a number of different ways and depends on the sector, the degree of control that the international partner is willing to

relinquish and local regulatory restrictions.

You need to consider how valuable a brand is to your company being successful. This includes thinking about how many people know the brand and whether they would be prepared to pay a premium to use your branded shop rather than another, unbranded equivalent. As a franchisee, you will likely pay an annual fee for the use of the brand. This might also include a provision for marketing documentation, packaging and signage. At the other end of a varied scale of relationships, you would cede management control to the partner and retain a minority stake in the company, receiving dividends if and when the company is able to distribute them. Franchisers and operators are reluctant to assume any of initial risk of setting up a business. That would normally be the responsibility of the local partner alone. The returns cannot be determined solely by the inclusion or exclusion of a partner. The most important thing for you to consider is the question of premium: there needs to be some direct benefit to you in terms of being able to charge more or have more customers than you would normally be able to achieve without such a brand. Coffee shop chains have justified large fees and the coffee is sold at a large premium. Do you think this model fits well with a gift shop?

Please email your queries on entrepreneurship to akshay@umsoman.com and they will be answered by Rajeev Singh of E&Y