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Spa Consulting and Recruitment Agency in Dubai

Part A: Entrepreneurial networks

In order to establish a business in Dubai, and expand the services across the social communities, it is essential to get support from diverse entrepreneurs in the country so that the business leader can get ideas about the industry and access the market activities efficiently. The business idea is about opening a Spa Consulting and Recruitment Agency in Dubai (UAE), where the spa industry is growing at a rapid rate. The customers demand for quality spa services is also increasing along with luxury services. Hence, it would be beneficial for the organisational entrepreneur to access market information and retain stakeholders to establish the consultancy in order to support the spa companies with innovative business ideas and recruitment activities (Howarth et al., 2019). The strategic planning of the organisation is to develop client centric services where the consultancy will support spa companies with innovative business advice and creative decisions making practices (Shin et al., 2020). 55% customers are female and 58% customers pre-booked the spa services in Dubai. Annual growth rate of the spa services in the country is 11%. Additionally, the consultancy firm will also provide the scope of recruitment advice for selecting the best talent in the market for maximising the quality of luxury spa services in order to satisfy customers. There are huge numbers of spa companies in Dubai, employing more than 25000 employees to serve the customers efficiently. The business is thereby innovative in supporting the spa companies and enhancing industry growth (Saxunova and Le Roux, 2019). In this business context, it is necessary to identify local and international entrepreneurs in order to access market information and co-operate with them to expand the consultancy firm across Dubai and other international countries (Howarth et al., 2019; Domina, 2020).

(Source: Howarth et al., 2019)

This is the network diagram for the new business of Spa Consulting and Recruitment Agency in Dubai (UAE), where the major entrepreneurs are;

Local spa companies or local competitors


Global spa organisation

Local trade organisation

Local suppliers

Banking institution

Local customers

The above-mentioned stakeholder groups are essential in order to develop a good business network, which will support and help to access the market and engender communications to stimulate the successful establishment of the business. Through this entrepreneurial network, it is possible to identify the entrepreneurs in the Dubai Spa industry which will be discussed further,

The local spa companies include, Timeless Spa, Anantara Spa - The Palm, Soul Wellness & Spa, Swissotel Spa and Sports, Sofitel Spa Dubai Downtown, Naturelife Spa Premium, Sisters Beauty Lounge and Soul Wellness & Spa, which are owned by successful entrepreneurs in the spa industry within Dubai. Dubai’s annual spa revenue is predicted to reach US$495 million in 2021.

Global spa organisations like Howard Spa consultancy and Royal Metis are a crucial entrepreneurial network within the country.

Emirates NBD, First Gulf bank, Abu Dhabi Commercial bank and National bank of Abu Dhabi are the major financial institutions for accessing business loans and arranging funds.

The local customer base in the Dubai spa industry is the crucial stakeholder group, where communication and cooperative behaviour will provide scope to identify market conditions and knowledge to identify the needs and preferences of local customers and tourists for the spa services.

The spa equipment supplier group is another crucial stakeholder for the business, where the new business can develop partnerships with suppliers and create a strong supply chain to manage the consultancy services. For example, Orchid Castle, Universal trading, Cosmetic Beauty and personal care equipment trading LLC and Joz Group are efficient and famous suppliers providing quality equipment for the spa services.

Moreover, the business trading group related to the spa industry such as AI Kamda general Trading LLC, UAE, Universal Group, and AI Murad Group are beneficial in developing creative spa consultancy services by retaining efficient suppliers and managing their consultancy operations through engaging with local and international business. In Dubai, the number of five-star hotel spas is to increase by a compound annual growth rate of 11% in the year of 2021.

Hence, the network diagram is effective in identifying the entrepreneurial group within the Dubai spa industry within which the business can establish itself by engaging with spa companies, spa equipment suppliers, local customers, and consultancy firms in the country (Ahmadi et al., 2018). Through developing good bonding and corporate relationships with the local and international entrepreneurs, it is possible for the new business to set up their Spa Consulting and Recruitment Agency in Dubai (UAE) and gain a competitive advantage. The business must develop partnership agreements or joint ventures to start up the new consultancy operation, and where possible, to access the market cooperatively. It is important for the new business to arrange funding by engaging with the banking institutions of Dubai, as well as strengthening the supply chain for accessing spa equipment and luxury products.

Part B: Critical evaluation of the use of negotiation skills in business

Negotiating and entrepreneurial skills are valuable assets for the entrepreneur intending to set up a new business and to establish an organisation as per the strategic planning. The entrepreneur’s target is to set up a Spa Consulting and Recruitment Agency in Dubai (UAE) which will support business clients and spa companies and in addition, retaining existing clients and adding others to the customer base, and ensuring the highest quality spa services (Perić et al., 2018). Effective verbal communication, listening skills, and reducing errors and misunderstandings, together with report building, problem solving and decision making, will help the entrepreneur conclude effective business deals by engaging with other stakeholders for the successful establishment of the business. (Pinthong, Pongwat and Vivatvanit, 2021).

Nature and scope of relationship building

Relationship building whilst negotiating is essential, so that the entrepreneur can develop the business operation strategically and renovate the activities in time. Building a long-term relationship in a negotiation, encourages the business owners to work collaboratively and build agreements that benefit all the entrepreneurs (AlBurai and Amann, 2021). The nature of relationships in the negotiation process includes a win-win condition where the partners of joint venture are beneficial in future, cooperative practice, corporate bonding and trust, which further provide scope for the business owners to renovate their operational activities and develop creative decisions to achieve future competitive advantage (Simchenko and Yanovskaya, 2020). For the spa consulting and recruitment agency, the nature of relationship is cooperative, partnership working practice and win-win decision making, so that all the entrepreneurs can work as a team and achieve the strategic aim by maximising profit (Han et al., 2019). The scope for the new spa agency, entails developing good bonding with the clients and customers, creating a good business portfolio, managing the product portfolio, and pricing, as well as targeting the clients with good spa consultancy services and recruitment agency activities (AlBurai and Amann, 2021). The relationship building practice in the Dubai spa industry further provides scope to build good rapport and create improved market conditions with product promotions and branding (Simchenko and Yanovskaya, 2020). The business visibility and the accessibility of the services will also improve over a period of time, through relationship building activities in negotiations that further provide scope for competitive advantage, and make the new business profitable in time (Thanitbenjasith et al., 2020).

Importance of effective business ‘deal-making’

Effective business ‘deal-making’ is essential for the business to set up proper planning and achieve future success. The entrepreneur aims at developing a successful spa consultancy, through making effective business deals. In order to strengthen the brand position, cooperation and collaborative partnership working with the other brands in Dubai should be a major objective (Mast and Demicco, 2017). Other benefits of developing effective business deals are good business strategic planning, enhancing creativity and innovation, ensuring business excellence, gaining a high market share, and a competitive advantage in the long run (Mijajlović et al., 2020). Through efficient deal making, the business can establish effective operational activities, in order to support the spa companies in Dubai (Saveleva et al., 2020). The customer base can be strengthened through making advantageous deals by utilising skilled negotiation tequniques for developing partnerships with other entrepreneurial stakeholders in the spa industry of the country (Mijajlović et al., 2020). The new business must focus on cultivating good deals through developing corporate relationships with the stakeholders and creating business networks to achieve future success (AlBurai and Amann, 2021).

Key success factors in effective deal making

Effective deal making is critical in order to strategize the operations, engage and retain efficient consultants within the organisation, and manage the finance for the expansion of the operation across the spa industry of Dubai. The key factors of effective business deal making are;

The experience of the entrepreneurs of both business organisations.

Good negotiation skill set of the entrepreneurs in order to make a win-win situation. Listening power and trust between the entrepreneurs are important success factors to make the deals. Creativity, innovation, and willingness of the business leaders to make decisions. Communication and execution of the business plans. Good evaluation of the business and making collaborative working practice to implement the business plans. Profitability and revenue generation of the organisations, to make the negotiation planning successful. Financial planning and equal contribution for achieving future strategic aim.

These are the major success factors to make effective business deals, where the entrepreneur’s negotiation skill is valuable in developing creative decisions to run the organisation efficiently.

Approaches to structuring, negotiating, and closing business deals

The business decision making process is a structured process, where the entrepreneurs are trying to utilise negotiation skill sets for developing creative business deals to achieve the strategic objectives (Pinthong, Pongwat and Vivatvanit, 2021). The process of making good business deals involves structuring the business, sharing the ideas with other organisation, negotiating through sharing data and information, rearing the business strategies, developing collaborative decisions, identifying the risk factors and creating alternative plans to mitigate the risk factors, and closing the business deal by implementing strategic planning to achieve future success (AlBurai and Amann, 2021). Making effective business deals is important to establish the new venture of the spa consultancy service (Nagar, 2021). The new consultancy firm must develop a collaborate partnership business with the spa companies in Dubai. In this process, the new business entrepreneur must enhance communication and cooperation with other venture firms in the spa industry, as well as propose the business strategy for further negotiation (El-Dief, 2018). The business strategies, financial investment and profit sharing are necessarily to be negotiated between the two parties so that it would be possible for the new business venture to access the market and utilise the client base of the local spa companies.

For further progress in the joint venture, negotiation is important, where both parties must share the business portfolio, services that they offer to the customers, financial share and profitability, which are helpful to develop trust and corporate bonding for final dealing (AlBurai and Amann, 2021). After developing a win-win situation, the business firms should try to analyse the upcoming risk factors and develop alternative strategies to achieve future business aims by gaining a competitive advantage (Pinthong, Pongwat and Vivatvanit, 2021). Hence, the negotiation process is crucial for making the final business deal. Through the business decision making process, it would be possible for the spa consultancy services and recruitment agency to develop creative strategic planning for its successful establishment, so that it can provide the best solutions to the spa companies in Dubai, as well as help the organisations to recruit experienced staff and talented people in order to deliver the best quality spa services to their customers.

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Reference List

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AlBurai, M. and Amann, W., 2021. Rethinking Competitiveness in the Real Estate Industry: How Stakeholder Orientation Creates More Value. Walnut Publication.

Domina, O., 2020. Selection of alternative solutions in the optimization problem of network diagrams of project implementation. Technology audit and production reserves, 4(4 (54)), pp.9-22.

El-Dief, M., 2018. Enhancing Customer Delight in Luxury Hotel/Resort Spa through Positive Emotions and Service Quality. International Journal of Heritage, Tourism and Hospitality, 12(2), pp.83-100.

Han, H., Thuong, P.T.M., Kiatkawsin, K., Ryu, H.B., Kim, J.J. and Kim, W., 2019. Spa hotels: Factors promoting wellness travelers’ postpurchase behavior. Social Behavior and Personality: an international journal, 47(6), pp.1-13.

Howarth, B., Khafaga, T., Simkins, G. and Joseph, S., 2019. Ecosystems as Commodity Frontiers—Challenges Faced by Land Set Aside as Protected Areas (PAs) in the Dubai Emirate, United Arab Emirates (UAE). In Commodity Frontiers and Global Capitalist Expansion (pp. 111-136). Palgrave Macmillan, Cham.

Mast, A. and Demicco, F.J., 2017. The medical spa in healthcare: Exploring the role of the registered dietitian. In Medical Tourism and Wellness (pp. 147-157). Apple Academic Press.

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Pinthong, C., Pongwat, A. and Vivatvanit, V., 2021. Text Mining and Factor Analysis of Service Quality of Spa Business in Pattaya, Thailand. In 2021 Joint International Conference on Digital Arts, Media and Technology with ECTI Northern Section Conference on Electrical, Electronics, Computer and Telecommunication Engineering (pp. 307-312). IEEE.

Saveleva, N.A., Yudina, T.A., Kovalenkova, O.G., Verbin, U.I. and Rokotyanskaya, V.V., 2020. Supply Chain Management in Competitive Structure of Sochi Health Resort and Spa Industry: Strategic Groups Analysis. International Journal of Supply Chain Management (IJSCM), 9(1), p.676.

Saxunova, D. and Le Roux, C.L., 2019. Tourism Industry in Rural and Urban Areas Slovakia and United Arab Emirates Examples. In MIC 2019: Managing Geostrategic Issues; Proceedings of the Joint International Conference, Opatija, Croatia, 29 May–1 June 2019 (pp. 157-172). University of Primorska Press.

Shin, M.S., Ki, M.S., Park, B.J., Lee, G.J., Lee, Y.Y., Kim, Y. and Lee, S.B., 2020. Speed-Power Performance Analysis of an Existing 8,600 TEU Container Ship using SPA (Ship Performance Analysis) Program and Discussion on Wind-Resistance Coefficients. Journal of Ocean Engineering and Technology, 34(5), pp.294-303.

Simchenko, N. and Yanovskaya, A., 2020, May. Development of Core Competencies in the Wellness & Spa Services in the Digital Economy. In 2nd International Scientific and Practical Conference “Modern Management Trends and the Digital Economy: from Regional Development to Global Economic Growth”(MTDE 2020) (pp. 1160-1165). Atlantis Press.

Thanitbenjasith, P., Kamkankaew, P., Tantavichet, D., Paukatong, T. and Limphothong, S., 2020. An Excellent Management Factor Model for Sustainable Thai Massage and Spa Business. GIS Business, 15(6), pp.41-50.

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