Chapter 6: Recommendations
The aim of this last chapter is to fulfil the primary research goal by offering suggestions on executing a
market entry strategy for Aectual in the UAE. This will be backed by showcasing recommendations, an
implementation plan, and a cost-benefit analysis, based on the ERS guidelines. To conclude, this chapter
will touch upon the limitations and future prospects of the thesis research.
6.1 Cost-benefit analysis and implementation timeline
The following three guidelines are recommended for Aectual to implement:
1. Finding a Local Service Agent:
Aectual should identify a local freelance national who is experienced in the architecture industry to act
as their agent. The steps involved include researching potential agents through websites such as Dubai
Chamber, Dubai Business Services, and Dubai Trade, agreeing on the terms and conditions of the agency
agreement, obtaining a power of attorney, and registering the agent with the relevant authorities.
Further, maintaining regular communication will ensure smooth operations. This can be achieved in a
few weeks and can generate connections and some projects as a starting point in meeting the sales
target.
A cost-benefit analysis was performed to predict the monthly revenue for Aectual in the UAE with the
help of a sales agent (See Table 7). The expected Net Benefit for the first month is estimated to be
€25,842. It is important to note that this analysis was conducted for four varieties of projects. However,
the research found that the sales agent is likely to bring between 5 and 20 projects per month.
Undoubtedly, the quantity and types of products sold will vary per month due to the nature of the
company, making it challenging to present an exact prediction for three months. However, this analysis
provides an adequate representation of what can be expected and concludes that the goal of generating
€100,000 from the UAE market in a quarter is attainable.
The cost of production encompasses both direct and indirect expenses, including employee salaries,
provision of equipment, samples, and catalogues for agents to showcase to prospective clients, and
transportation costs. The cost-benefit analysis includes confidential company information and thus, the
cost of production is calculated using a percentage that closely reflects the actual number, in order to
safeguard and prevent unauthorized disclosure of sensitive information.
The agreement between the potential sales agent and Aectual would be a structure where the
commission rate (17% from primary findings) is based on the gross margin and not on the sale amount,
plus a one-time standard rate of €95 per project. For instance, in Project W, the sales amount (€10,485)
minus the cost of production (€2,621) equals the gross margin (€7,864), which is multiplied by 17% to
calculate the commission rate for the agent. The final costs for the agent for this project are €95 +
€1,337= €1,432. The same calculation method is used for all project estimations.
, Table 7. Cost-Benefit analysis: Monthly estimated costs for four separate projects
Details Project W Project X Project Y Project Z
Product(s) 1) S.Wrap 1) S.Gradient. 1) O.Puff.Knit 1) S.Weave. Moiré
Description Cannelure Nazka 2) O. Hanging
2) Screen
S.Boxy.Cannelure Pixel.Brick
Planters 3) O.Room Divider
Gradient.Curve
Unit price (€) €418.90 p/m2 1) €432.00 p/m2 1) €829 1) € 389.90
€418.90 p/piece 2) €1,676
3) €2,500
Quantity 1) 18.32 m2 1) 25.40 m2 1) 3.00 piece(s) 1) 29.50 m2
2) 6.00 piece(s) 2) 1.00 piece(s)
3) 2.00 piece(s)
Calculation 1) 18.38 x 418.90= 1) 25.40 x€432 = 1) 3.00 x €829 = 1) 29.50 x 389.90=
€7,699 €10,973 €2,487 €11,502
2) 6 x 464.41= 2) 1.00 x €1,676 =
€2,786 €1,676
3) 2.00 x €2,500 =
€5,000
Cost of €2,621 €2,743 € 2,291 € 2,876
production
Commission-b €95+(€7,864x17%) €95+(€8,230x17% €95+(€6,872x17% €95+(€8,627x17%)
ased agent = €95 + €1,337 ) = €95 + €1,399 ) = €95 + €1,467
(€95 per = €1,432 = €1,494 = €95 + €1,168 = €1,562
project + 17 % = €1,263
rate)
Total Cost €4,053 €4,237 €3,554 €4,438
(Production
+Agent)
Earning Benefit €10,485 €10,973 €9,163 €11,502
Net Profit €6,432 €6,737 €5,609 €7,064
Total Net Profit € 25,842
(month)
The aim of this last chapter is to fulfil the primary research goal by offering suggestions on executing a
market entry strategy for Aectual in the UAE. This will be backed by showcasing recommendations, an
implementation plan, and a cost-benefit analysis, based on the ERS guidelines. To conclude, this chapter
will touch upon the limitations and future prospects of the thesis research.
6.1 Cost-benefit analysis and implementation timeline
The following three guidelines are recommended for Aectual to implement:
1. Finding a Local Service Agent:
Aectual should identify a local freelance national who is experienced in the architecture industry to act
as their agent. The steps involved include researching potential agents through websites such as Dubai
Chamber, Dubai Business Services, and Dubai Trade, agreeing on the terms and conditions of the agency
agreement, obtaining a power of attorney, and registering the agent with the relevant authorities.
Further, maintaining regular communication will ensure smooth operations. This can be achieved in a
few weeks and can generate connections and some projects as a starting point in meeting the sales
target.
A cost-benefit analysis was performed to predict the monthly revenue for Aectual in the UAE with the
help of a sales agent (See Table 7). The expected Net Benefit for the first month is estimated to be
€25,842. It is important to note that this analysis was conducted for four varieties of projects. However,
the research found that the sales agent is likely to bring between 5 and 20 projects per month.
Undoubtedly, the quantity and types of products sold will vary per month due to the nature of the
company, making it challenging to present an exact prediction for three months. However, this analysis
provides an adequate representation of what can be expected and concludes that the goal of generating
€100,000 from the UAE market in a quarter is attainable.
The cost of production encompasses both direct and indirect expenses, including employee salaries,
provision of equipment, samples, and catalogues for agents to showcase to prospective clients, and
transportation costs. The cost-benefit analysis includes confidential company information and thus, the
cost of production is calculated using a percentage that closely reflects the actual number, in order to
safeguard and prevent unauthorized disclosure of sensitive information.
The agreement between the potential sales agent and Aectual would be a structure where the
commission rate (17% from primary findings) is based on the gross margin and not on the sale amount,
plus a one-time standard rate of €95 per project. For instance, in Project W, the sales amount (€10,485)
minus the cost of production (€2,621) equals the gross margin (€7,864), which is multiplied by 17% to
calculate the commission rate for the agent. The final costs for the agent for this project are €95 +
€1,337= €1,432. The same calculation method is used for all project estimations.
, Table 7. Cost-Benefit analysis: Monthly estimated costs for four separate projects
Details Project W Project X Project Y Project Z
Product(s) 1) S.Wrap 1) S.Gradient. 1) O.Puff.Knit 1) S.Weave. Moiré
Description Cannelure Nazka 2) O. Hanging
2) Screen
S.Boxy.Cannelure Pixel.Brick
Planters 3) O.Room Divider
Gradient.Curve
Unit price (€) €418.90 p/m2 1) €432.00 p/m2 1) €829 1) € 389.90
€418.90 p/piece 2) €1,676
3) €2,500
Quantity 1) 18.32 m2 1) 25.40 m2 1) 3.00 piece(s) 1) 29.50 m2
2) 6.00 piece(s) 2) 1.00 piece(s)
3) 2.00 piece(s)
Calculation 1) 18.38 x 418.90= 1) 25.40 x€432 = 1) 3.00 x €829 = 1) 29.50 x 389.90=
€7,699 €10,973 €2,487 €11,502
2) 6 x 464.41= 2) 1.00 x €1,676 =
€2,786 €1,676
3) 2.00 x €2,500 =
€5,000
Cost of €2,621 €2,743 € 2,291 € 2,876
production
Commission-b €95+(€7,864x17%) €95+(€8,230x17% €95+(€6,872x17% €95+(€8,627x17%)
ased agent = €95 + €1,337 ) = €95 + €1,399 ) = €95 + €1,467
(€95 per = €1,432 = €1,494 = €95 + €1,168 = €1,562
project + 17 % = €1,263
rate)
Total Cost €4,053 €4,237 €3,554 €4,438
(Production
+Agent)
Earning Benefit €10,485 €10,973 €9,163 €11,502
Net Profit €6,432 €6,737 €5,609 €7,064
Total Net Profit € 25,842
(month)
