Zamil industrial Investment is a public listed company that was established in late 1990s. The Company’s headquarters are located in Dammam city, Saudi Arabia. According to “Zamil Industrial Annual Report 2016”, (2018) the company is considered to be a leading force in manufacturing and fabrication for the construction industry where it provides engineered products, support services and systems. The company largely deals in establishing manufacturing plants in Asia, Europe, and Africa (“Zamil Industrial Annual Report 2016”, 2018). The products and services provided under Zamil industrial include:
• Structural steel products and pre-engineered steel buildings
• Passive telecom infrastructure
• Installing and servicing systems for air-conditioning
• Manufacturing telecom and transmission towers
• Building steel decks as well as open web joists
• Building insulating materials such as rock-wool and fiberglass
• The manufacture of security systems with automations.
• The company also maintains and inspects industrial projects
• Pre-cast concrete products
• Offering solutions to Turnkey project
(“Zamil Industrial Annual Report 2016”, 2018)
Its reach and clientele spans over at least 99 countries and impacts the daily lives of approximately 11, 000 people. Their success is attributed to good market strategy and the range of products and service offered.
• The Company launched
• The company formed as a closed Joint Stock Company.
• Zamil Industrial acquires Clima Tech-Austria, one of Europe’s largest products of technology based air-handling system
• The Company acquires Geoclima srl, an Italy based manufacturer for Chillers.
• Zamil Industrial has listed on the Saudi Stock Exchange (Tadawul)
• Zamil Industrial makes its third acquisition in Europe – this time a technology and brand name acquisition of Kessler Tech, well-known name for air handlers and ventilation units in Germany.
• Increasing its capital to SAR 350 million (USD 93.3 million).
• The board of director announces expansion projects.
• Establishing new factors in Saudi Arabia and UAE.
• Increasing its capital to SAR 450 million ( USD 120 million ).
• Zamil Industrial succeed in UAE Web awards.
• Zamil Industrial acquires 51% stake in Arabian Fiberglass Insulation Company (AFICO).
• The company launches its new identify.
• They win Gold at Pan Arab Web Awards.
• A Joint Venture with New Delhi Private Ltd. to supply telecom infrastructures, air conditioning equipment, and power interface units.
• A Joint Venture with Hudson Products Corporation of USA that focuses on the manufacture, assembly and maintenance of Air Cooled Heat Exchangers serving utility, petroleum, chemical, oil and gas processing and industrial customers in the Middle East, Africa, and Central Asia.
• A joint venture with Armacell of Germany, a global leader in the manufacture of engineered foams and flexible technical insulation materials.
• A joint venture with RANCO Precast, a subsidiary of Rabiah and Nassar Group.
• A joint venture with Advantec Coils Private Limited, India, a growing air conditioning manufacturer and operator of a completely integrated manufacturing facility.
• Zamil Receives Certificate of Royal Appreciation from King Abdullah bin Abdul Aziz.
• The company formed a new 50-50 joint venture with Petro-Chemical Development Company of USA, the leading designer and manufacturer of world-class fired heaters, furnaces, pre-heaters and heat recovery systems, to jointly produce fired heater (process furnace) products in Saudi Arabia.
• The company increases its capital to SAR 600 million (USD 160 million).
• Zamil Industrial received the ‘Best Working Environment for Training and Development 2009′ Award in recognition of its inclusive approach to employee career development in a recent comprehensive study conducted by consultants TeamOne Middle East and Al Eqtisadiyah newspaper.
• Zamil Industrial acquires 51 percent stake of Gulf Insulation Group and merges all insulation businesses in new JV.
• Zamil Industrial increased shareholding in “Advantec Coils Private Ltd” India, from 30 percent to 100 percent. The new company is called Zamil Air Conditioners India Private Ltd.
2. Vision & Mission
2.1 Zamil Industrial
“To be a Winning Industrial Leader Creating Superior Values for Business and Community.”
“To Win Markets and Stakeholders’ Trust Through Industrial Competence and Mutual Prosperity.”
2.2 AlGaith (Competitor)
– Vision & Mission
“We are committed to excellence in our endeavors and strive to maintain the trust and confidence of our customers. Conformance to business ethics and integrity enhances our reputation and enable us to attract and retain customers and employees alike”
It is possible to work on developing a new vision that will benefit from the experience and expertise of Alzamil and Alghaith. The vision of this company is to encourage creativity and innovation by integration of our core values in pursuit of innovative corporate strategies that will seek, support and nurture new business and reward shareholders, employees and communities with the benefits of the success.
The main objective is to achieve highest revenue and lowest cost with highest quality value through industrial performance diverse functions. Our recommended mission is to work on the convenience of customers by searching for all new and useful industrial technology and getting more expansion in several industrials.
3. External Analysis
3.1 Michael Porter’s 5 Factors
Profitability varies from one company to another, which is different due to many factors. Among these important factors is the structure of the industry or the various factors that affect the industry. Porter has put five elements that affect the amount of profitability in the industry in the so-called five competitive Porter Forces: The degree of competition, threats of substitutes, barriers to entry, supplier’s power, and buyer’s power. Applying the five elements forces to AlZamil Company as follow:
o Degree of competition (Degree of Rivalry):
AlZamil has achieved the highest level of competition in the market to achieve the highest profits through increasing its industrial over the world to ensure market excellence; moreover, the company has been rapidly growing in the market through continuous development, and are working to achieve excellence in product and service so that it can maintain its strong reputation in the market.
o Threat of Substitutes
Where there are risks of alternatives industrial companies which provide such as steel buildings, steel structures, air conditioning with lower cost and highest quality and from there the company is working to achieve competitiveness through continuous development and maintain competitive prices.
o Barriers to Entry
There are many factors that prevent any competitor to enter the industrial market, such as: capital requirements, product differentiation, customer switching costs, access to distribution channels, and government policy.
o Supplier’s Bargaining Power
The negotiating power in the industrial market is low which is due to the large number of suppliers compared to those firms purchasing. Due to economies of scale, Alzamil has the bargaining power to negotiate the prices of suppliers.
o Buyer’s Bargaining Power
In the domestic market, due to the strong competition in the market, the customer power is high because the ability off the customer to put the firm under pressure and it also affects the customer’s sensitivity to price changes.
3.2 Six General Factors
The general environment of a company consists of six forces: demographic, socio-cultural, economic, global, technological, and political/legal. Despite Zamil sharp increase in demand, these factors reflect the day to day circumstances that affect their operations and performance. This analysis will demonstrate how these external forces affect Zamil.
Alzamil continuing achievements represent the solid standing of the company and their products and services, not only at home in Saudi Arabia but also in Egypt, India, Vietnam and Italy, where they maintain manufacturing facilities. In all areas of their activity, be it steel buildings, telecommunications and transmission towers, process equipment, HVAC products and services, insulation materials and precast buildings and elements, their reputation is unsurpassed in terms of quality and reliability.
Considering the responsibility of AlZamil Company, they seek to ensure detailed attention to the environment, energy efficiency and the conservation of water and energy wherever we operate. Participation in charitable and social activities is very much part of our corporate core values and that of our management and employees. AlZamil recognizes the observance of ethical and professional standards in every aspect of the company’s business. As a public company, they always endeavor to adhere to the counsel of the Capital Market Authority so as to ensure a credible environment for their investors.
Since the prevailing global economic environment has posed challenging circumstances in our local and export markets, this accomplishment is to be highly commended. In our home market of Saudi Arabia, the major decline in the oil price has had an adverse impact on national economic development, but the government has remained the main driving force of the economy by drawing- down reserves to meet commitments.
Today, Alzamil serve clients in more than 90 countries worldwide and operate businesses in four major industrial sectors – Steel, HVAC, Insulation Materials and Concrete. They are majority shareholders in joint venture companies and own several subsidiaries. Their companies employ more than 11,000 people in 55 countries and obtain around 30% of their revenue from countries other than Saudi Arabia.
The technology environment has been substantially upgraded to ensure greater coordination across all business units. Continued investment in emerging technologies ensures that the considerable opportunities that occur globally can be accessed by Zamil Industrial, achieving seamless convergence between information technology and operational technology.
Legal Affairs is key to the creation of a culture of compliance wherever Zamil Industrial maintains operations, whether domestically, overseas or as part of the Group’s in-house legal counsel. As in past years, Legal Affairs has seen considerable activity in managing legal risk in all business units while also rigorously reviewing various agreements. The support provided covers diverse documents from commercial contracts to Memorandums of Understanding and distributorship to non-disclosure agreements. The department also prepares company board and partners’ agreements, articles of association or their amendments, and powers of attorney. It also provides legal advice on corporate restructuring or dissolution and on due diligence.
4. Internal Analysis
4.1 SWOT Analysis
In a bid to evaluate a business environment, every company requires to conduct a SWOT analysis. This analysis offers an evaluation of the strength, weaknesses, opportunities and threats regarding the businesses’ immediate environment. Zamil Industrial is no exception despite its size and international reach since it is subject to all of these factors.
One of the key strengths of Zamil industrial is its international reach. With manufacturing plants in 6 countries and clients and partners in over 99 there is a wide market for the large number of products produced (“Zamil Industrial Annual Report 2016”, 2018). This is because though their main source of business is the home market in Saudi Arabia they are able to service and apply for major contracts on the international markets considering the power and pull of their partners like General Electric amongst others (“Zamil Industrial Annual Report 2016”, 2018). This gives Zamil a far much more advantageous competitive edge in their chosen markets. They also have the advantage of being a one-stop shop for major construction dealing all the way from pre-cast buildings to air conditioning units and everything in between.
The major weakness that can be identified for Zamil industrial is the heavy dependence on the Saudi Arabia market which leaves them subject to lower profits when oil prices lower causing fewer projects and contracts to compete for (“Zamil Industrial Annual Report 2016”, 2018). The market is also very competitive which risks the subsidiaries to have to make up for losses made in the home market.
There are many opportunities for Zamil Industrial to explore in the future. The first is the rapidly growing economies of Saudi Arabia, UAE, India and Egypt (“Zamil Industrial Annual Report 2016”, 2018). The governments in these countries are steadily increasing the budgets for large infrastructure projects and Zamil industrial is well placed to capture these contracts. Zamil industrial also has the good reputation of quality and reliability and this is attractive to private sector clientele (“Zamil Industrial Annual Report 2016”, 2018).
The biggest threat to Zamil industrial is the volatile political situations in the Middle East with the involvement of the Saudi Arabia government in the civil war in Syria (“Zamil Industrial Annual Report 2016”, 2018). This has shifted the political and economic climate in the region and increased investor fears. There is also massive completion faced both in the home market and in foreign markets.
4.2 Value Chain Analysis
Value chain analysis deals with inbound and outbound logistics that a particular company adopts in order to increase its competitive advantage. Primarily Zamil industrial has embarked on two strategies to increase market competence and higher revenue. To achieve a competitive advantage, the company has put in place management controls that ensure operational efficiency to grow profits. In this context, the management controls are viewed as inbound logistics. Inbound logistics of the company that includes receiving, warehousing and managing the raw materials in the inventory, for AlZamil where most of the raw materials are produced internally a system have been created to track employees usage of which material, quantity and when the order needs to be issued. AlZamil Company Operations of AlZamil’s Co. is done in multiple countries including the kingdom, China, India and Egypt where manufacturing is performed in factories owned by AlZamil industrial Company and in others.
Outbound logistics, how the products reach customers, through the one-stop shop of AlZamil and by other way of delivering through distributors like, extra, AlGhaith Shop for air-conditioning and by customizing orders and delivering them from the factories of AlZamil directly to other businesses and usually for either high amounts of products or large budgets for multiple requirements. Marketing and Sales for their products and services some services are customized for specific customers and other products are marketed by their distributors or by its quality. Services provided include the warranties, repairing after sale and customer service AlZamil offers to its customers for any inquiries, this initiative has strengthened Zamil’s flexibility and efficiency in customer service. This also means directing focus to market in countries where the governments despite the shaky economic times in Asia, are investing heavily in infrastructure development (“Zamil Industrial Annual Report 2016”, 2018). Additionally, it implies the company is able to focus on the government budgets in their main markets like Saudi Arabia where 70% of revenue is made, thereby allowing it to strategize on sustainability (“Zamil Industrial Annual Report 2016”, 2018). Procurements in AlZamil, production of its own raw materials a form of integration referred to as backward integration, buying or merger with suppliers in the supply chain, to reduce cost of transportation and improve efficiency, few of the parts are obtained from unknown suppliers from Asia countries like China, Thailand and Japan. HR management at AlZamil is the most important resource for the company, where employees are given the perfect combination of training, environment, culture and leadership. Recruiting the managers and selecting the best among them is of value to the company since they will provide the proper guidance to employees to extract the best of technical skills and productivity they inherent. Technology development and R&D resulted in enhancing the position of Alzamil co. by adding new line of products and services to the company’s portfolio and improving the processes of developing the products and delivering the services.
General administration, those people who are in charge to make decisions in the company and how effective is the impact of their decisions, BOD is changing every four years with permanent executives and nominees. Through the BOD and CEO of AlZamil industrial company efforts the company is now performing in more than 90 countries and have received 50 awards and certification for their broad services and products delivered from various institutions throughout the years of success.
4.3 Resource-based View
A resource-based view looks at how a firm uses its resources to be more competitive. Financial resources of AlZamil are of investments and capital of more than 250 millions SAR. AlZamil Industrial views its employees as its greatest resource and invests adequately to ensure they provide quality work in a healthy safe working environment. Excellent training does this from recruitment and all through each employee’s career. There is also a Talent Review Program that studies employee’ potentials for development at an individual level (“Zamil Industrial Annual Report 2016”, 2018).
To also better manage manufacturing and environmental resources Zamil Industrial has undertaken rigorous programs to conserve water increase energy efficiency and reduce their carbon footprint (“Zamil Industrial Annual Report 2016”, 2018). The immense steps undertaken have resulted in lower operating costs, healthier environment, and worker satisfaction. Through the coordination of an Internal Audit Team Zamil Industrial ensure every resource is well used and properly managed to give the company a competitive edge in the struggling markets of Asia (“Zamil Industrial Annual Report 2016”, 2018)
5. Business Level Strategies
Though Zamil Industries has many subsidiaries, they share a mission and vision to work together in harmony to accomplish common goals (“Zamil Industrial Annual Report 2016”, 2018). At the business level, the varied subsidiaries have different strategies but still share common characteristics. They share human resource and management strategies, which are defined by rigorous training to personnel, welfare improvement and use of management controls to ensure satisfaction amongst employees and quality work.
o Steel sector
The steel sector in Zamil Industrial is divided into two product sections. The first steel product section comprises of BPG- Building Products Group. The second steel products section deals in ISPG- Industrial Steel Products Group. The main strategy of establishing the two sections involves the company’s diversification and quality improvement of the products offered. Through deals with French and American companies they have increased the range of steel differentiated products available under licensed production. This has caused a large increase in revenue over the last 2 fiscal years in the sector (“Zamil Industrial Annual Report 2016”, 2018).
o HVAC sector
The air conditioning division of Zamil industrial is considered the largest provider of HVAC systems in the Middle East. The main strategy of this division has been cost-leadership and innovative approaches to major industrial conditioning units. This has resulted in the award of major contracts to supply buildings, hospitals and factories between 2015 and 2017 (“Zamil Industrial Annual Report 2016”, 2018). Consumer home units have also been innovated to be smaller, more affordable and provide better eco-friendly cooling.
o Insulation sector
The insulation sector in Zamil Industrial is made up of several partnerships across the Gulf and this has allowed for production of high quality environmentally friendly insulation products that are in high industrial and construction demand (“Zamil Industrial Annual Report 2016”, 2018). This is a result of the strategy to find lower cost production methods that result in high quality products.
o Concrete sector
The concrete sector’s main strategy has been innovation of pre-cast concrete structure offered to provide customers with a variety of products to choose from (“Zamil Industrial Annual Report 2016”, 2018). Also they have been targeting major contracts and projects to make sure that they produce in mass, which saves on production costs. Rigorous training to employees is also carried out frequently to ensure smooth, safe and environmentally friendly operations.
6. Corporate Level Strategies
The values and mission of Zamil Industrial form the backbone of their corporate strategy. Their mission is to acquire more markets as well as stakeholders. To achieve this mission, the company has established values such as mutual prosperity, industrial competency, and trust in its niche. The company’s vision and overall aim is to become a leader in its market niche. The company intends to achieve its vision through the creation of sustainable values for the immediate business environment as well as for the larger community.
In line with this corporate strategy, the company is defined by their desire to match customers’ needs with excellent products and diligent service while bringing prosperity to the communities where they operate. To diversely offer all industrial and construction needs with the greatest quality and reliability. Corporate level strategy also ensures profitability through rigorous management controls and a vibrant Internal Audit department that prepares frequent audit reports to the audit committee.
7. International Strategies
Saudi Arabia, Egypt, United Arab Emirates, Vietnam, Italy, and India are examples of the six countries, worldwide, where Zamil Industrial operates its manufacturing facilities in. As previously mentioned, they have an array of different products that they offer to more than 90 countries across the world. Such products include steel structures, pre-engineered steel buildings, process equipment, air conditioning and climate control systems.
Based on the facts present, with both low pressures for price reduction and local adaptation, Zamil Industrial seems to adapt the international strategy in doing business. Their products of concrete building structures and fiberglass are considered highly expensive and standardized regardless of the country they are being sold to. Solar power projects and steel structures and equipment are known to be relatively high-priced, and usually do not differ from one country to the other.
8.1 Strategic Control
As most publicly listed and private sector companies, Zamil Industrial follows a contemporary approach to strategic control. This allows them to adapt and anticipate any changes in both the external and internal environments of the company. This can be proven by the company’s utilization of both informational and behavioral control.
Informational control is a continuous organizational learning process by which the company undergoes to evaluate, monitor, update, and challenge strategy assumptions both internally and externally. As the manufacturing industry is considered relatively complex with so many emerging technologies, the firm has to be on top of such changes by constantly scanning and monitoring the environment to see if the organization is “doing the right things”. Whether it was by reviewing current strategies, adapting new technologies, or even take measures, such as the position of key executives within the firm, to enhance internal conditions. By doing so, the firm is able to shorten unnecessary time lags that as a result enhance the speed and flexibility of the firms’ response to any change in the competitive environment.
Behavioral control is an employee-centered mechanism for which the company uses in order to make sure appropriate actions is practiced in the workforce. This approach influences employee behavior through culture, rewards, and boundaries.
An organizational culture is the set of common values and beliefs that are shared among the organization. They are considered unwritten standards of acceptable behavior that everyone is expected to follow. Zamil Industrial prides itself in having 5 core values in which they believe in; Honesty and Integrity, Customer Excellence, Community and Prosperity, innovation and Change, and lastly Leadership and Prudence. Such values when combined together provide not only greater employee engagement, but also a common purpose and identity throughout the organization. This framework encourages individual identification with the organization and its objectives
Another important aspect of behavioral control that needs to be closely linked to culture is the organizations reward system. Incentive programs usually motivate employees to act according to the firms’ culture and expectations. It also acts as a tool to minimize agency problems, and enhance individual performance and overall firm outcomes. Zamil Industrial follows the “promote from within” policy in which staffing priority are given to existing employees with the highest level of performance and is best qualified. This identifies high potential employees and provides them with professional and career growth. They also recognize and reward good performance by setting in place certain mechanisms that allow fair administration of compensation packages to offer competitive salaries. Which means staff salaries and benefits usually commensurate to their role and the value they bring to the company.
Lastly, culture and reward systems need to be reinforced by rules and regulations in an efficient manner. Because most Zamil Industrial products are standardized, written guidelines that provide external constraints on behavior is implemented. Another form of boundary that firms usually exercise is their vision, mission, and strategic objectives. They are a type of short-term action plans that channel overall efforts, as well as they act as boundaries in the sense that it gives all employees a “goal-line” for which they shoot for.
8.2 Corporate Governance
Corporate governance is term that best describes the relationship between the various types of shareholders, management, and the board of directors. It includes structures and processes that best determines the direction, performance, and control of the firm. Good corporate governance often leads to sustainable economic development and financial performance.
Being a family business, Zamil Industrial have separated their governance into two dimensions; Family Governance and Corporate Governance. As most family businesses fall due to poor corporate governance, it is also a fact that it is an inevitable consequence of the lack of the right “family governance” structure. Zamil Industrial take both structures seriously and consider them to be equally important to the survival of the firm.
What differentiates Zamil Industrial from other firms is their much appreciated family values, that they still hold very dear. Its crucial role is being translated very clearly through the capitalization of family members in the family governance structure. Such presence usually prevents conflict from happening, and insures continuous growth and prosperity for the business. Zamil Industrial family governance structure consists of two parts; the first being Family Institutions, and the second is Family Constitution
As shown in the diagram above, Zamil Industrial family governance institutions include the family council, family office, talent committee, and Abdullah Hamad Al Zamil Community Center. Such institutions help build harmony between family members as it strengthens their relationship with its business. Furthermore, the Family Constitution, states the principles and core values that define the AlZamil Family. It discusses their commitment to their beliefs, as well as the corporations vision and mission. It also outlines the roles and powers of key executive bodies within the family. The Constitution also defines a “Code of Conduct” that each family member relates and adhere to in regards to family and/or business relations.
The Corporate Governance structure, on the other hand, emphasizes on the importance of partner, investor, and other stakeholder interests. A Corporate Governance manual is available that emphasizes on the rights, roles, and responsibilities of different layers in governance bodies to insure clarity and unity of different roles. The framework works to implement the best practices available to ensure not only that all operating and financial activities are fairly and clearly reported to shareholders in an orderly, timely fashion, but also to make sure that all staff and employees are acting in a lawful and ethical manner in any and all dealings. The framework also describes the appropriate procedures in covering management activities and daily operations.
8.3 Organizational Structure
Zamil Industrial consists of four sectors; HVAC, Steel, Insulation, and Concrete. This comprises a divisional organizational structure where divisions or sectors are considered relatively autonomous with products and services different from each other. Each division includes its own executives in which they determine product, market, and financial objectives. As a result, each division encompasses its own set of functional specialists who are organized into departments. Such complexities within the business structure places an excessive demand on top management, this necessitates the delegation of decision making to lower-level management in order to focus on broader, long term organizational issues and increase efficiency as well as productivity.
Zamil Industrial also adapts the Modular approach in making its organizational boundaries more permeable, thus increasing the sharing of knowledge and information across both the external and internal boundaries of the organization.
This can be seen in their latest project of supplying nine Pre-Engineered Steel Building (PEBs) to Iceland. The project was first secured by their sales office in Athens, Greece. Then all of their facilities in Saudi Arabia, Egypt, and India contributed to make this project work, each taking a load that would best fit their operations strategies and schedules. The most important part, which is the structural design of the buildings, was completed by Zamil Steel Industries’ Engineering Group in Saudi Arabia, while other detailing work and production was executed by Zamil Steel Industries’ factories in Egypt, India, and Saudi Arabia.
This approach of outsourcing non-vital functions allows the firm to not only reduce its overall cost, but to also achieve its maximum amount of expertise as well as attain critical skills that increases organizational learning. The out sourcing of non-core functions also offers the firm the advantage of rapid product development, inventory savings, and the expansion on the technology used. It also enables the industry to focus its scarce resources on the competitive advantage it holds, increasing organizational efficiency and productivity. All doing so by still maintain full strategic control over its most critical activities.
8.4 Strategic Leadership and Ethical Programs
“A company is only as good as its people.” A saying that is not only created by Zamil Industrial, but is also adapted and practiced by the firm. The leadership have successfully established an ethical framework following the approach of an integrity-based ethics program. Realizing that being ethical is a more comprehensive idea that does not simply rely on the prospect of being legal, Zamil Industrial created this framework. It combines the concern for law and litigation with an emphasis on corporate and managerial responsibility for ethical behavior. The firm believes that its employees represent the company as a whole to its customers, suppliers, visitors, and even the public. To them, it is of utmost importance for their employees to abide by not only the law, but to also respect and act in accordance to the customs and religion of the territory the business is being conducted in. Their standards include:
• Uncompromising honesty and integrity
• Avoiding conflicts of interest
• Respect for the dignity and worth of all individuals
• Promotion of individual initiative and innovation
• Maintenance of a safe workplace
• Protection of the environment
Any violation will subject the employee to undergo the appropriate disciplinary actions, which may include permanent termination of employment.
To conclude, in this report we conducted an overall analysis of the business operations and strategies of this multifaceted organization and its various sectors and divisions. We touched every aspect of the organization, from its internal and external analysis to their business and corporate strategies. We shed light on its value chain analysis as well as discussed the implementation of its various factors such as the method of leadership adapted and its organizational structure. Zamil Industrial seems to be doing a good job overall, but based on the SWOT analysis conducted, we recommend that it implies improvements in the way it conducts business. Where the company should think of finding new niches in the international community and shift the huge reliance of funds from the kingdom market due to political and economic situations. Thus, AlZamil co. should invest in new niches overseas. By this it can sustain a healthy and stable financial position