Emirates Airways Strategic Management

Emirates Airways Strategic Management Step One Getting Ready Organizational Profile Emirates Airways is currently the leading airline in the Middle East. This firm was started in 1985 by the Emirati government. There was a rising concern that some of the international planes that were plying the route were avoiding the route and this was causing a lot of inconveniences to the people of this country.Advertising We will write a custom report sample on Emirates Airways Strategic Management specifically for you for only $16.05 $11/page Learn More The government of United Arab Emirates realized that the country needed to develop an airline that would take care of the interests of the country’s nationals. The government had embarked on development of the infrastructure of the country. The roads were well developed and the airports were also properly expanded (Freeman 92). Dubai was rising very fast as a business center. The government had heavily invested in building social amenities, besides the infrastructure, and therefore this city was attracting a good number of tourists on a yearly basis. As a result of this, the government wanted an airline that would be reliable to its tourists, and other people that would be travelling to this country. They wanted an airline that could be controlled by the state, and could meet the rising demands locally. This was the genesis of this airline company. The Emirates Airline has its headquarters in Dubai in Dubai International Airport. This firm operates in to four largest destinations across the world. The firm operates in more than 100 destinations in 74 countries. The company has managed to overcome the stiff competition that is in the current market. According to Desvaux (70), the airline industry is very competitive. This scholar notes that this competition has been rising in the past decade with the entry of new airlines into the industry. It becomes a big challenge for a firm to operate in such a competitive market if it lack s proper competitive strategies. This scholar notes that the aviation industry has been consistently on the rise in the past one decade. The emerging technologies have brought in a lot of changes in this industry, and firms are forced to adjust their operations in order to meet the market demands. The emerging trends in the aviation industry cannot be ignored. It would force a firm to embrace these changes in order to realize the benefits that this industry has to offer. This is what the management of Emirate Airline has been keen on. This firm has received enough financial support from the government to enable it manage the emerging trends in the aviation sector. Effective strategic planning has seen this firm become the largest airline in this region. According to Freeman (26), project management has changed from what it used to be in the past. Project management was considered as part of production about 50 years ago. By then, competition was low, and the main concern was to incr ease production of the firm. The market was readily available in the global world. However, this has systematically changed over the years.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Firms have come to realize that customers have various options to choose from when they want to make a purchase. Given such independence of the customers, firms have come to realize that they have to come up with strategies that would enable them attract customers. This has resulted in a scenario where every firm is struggling to come up with appealing strategies through which they can capture the attention of the customers. Issues that the planning process should address Planning process should address specific issues within an organization that would result in achieving the goals of a firm. The vision of a firm always stipulate what the firm plans to achieve. Strategic planning would help achi eve this vision within the desired timeline. One of the main issues that planning process should address is the emerging technologies. In the field of aviation, there are various emerging technologies that affect the industry very heavily. The emerging technologies are bringing new trends that have redefined marketing in this industry. For instance, most of the bookings in this industry are currently done online. Customers can easily do their bookings from their homes. Emirates Airline must ensure that it adopts this technology if it plans to increase its customer base. Planning should be done with the aim of ensuring that the process of implementing this technology within this firm is successful, and that it reflects the current trends in the market. Another issue that requires serious planning within this firm involves customers’ comfort when on board. Many of the major airlines like the British Airways and Virgin Atlantic have come up with strategies to ensure their custom ers are satisfied. This involves installation of television screens and music system on each seat. A customer can watch television on a seven inch screen fixed on the backseat of the seats. Other services like snacks and newspapers are also offered to increase customer satisfaction. This firm should develop a clear plan on how it would come up with a strategy that would help the firm come up with such services that would offer its customers superior satisfaction in the market. Information that must be collected to help make sound decisions Information is very important when making decision. In order to come up with a sound decision on what steps that should be taken to ensure that the strategic plan is successful, it would require the management to ensure that relevant information is gathered from all the relevant stakeholders. The days when decision would be made based on the information the top management had are long gone.Advertising We will write a custom report sample o n Emirates Airways Strategic Management specifically for you for only $16.05 $11/page Learn More In the current society, it is important to ensure that all the stakeholders’ opinion, from the customers to employees, the government and the general public, are taken into consideration when making sound decision. From the customers, it is important to have information about their changing tastes and preferences in the market. Collecting this information will help make a sound decision when it comes to developing customer management strategies. Employees’ opinions should also be put into consideration when making decision because they are the ones involved in the day-to-day activities of the firm. Management should therefore collect this information when making decision. Information from the government, industry players and the general public is also important to take into consideration when making sound decision within the firm. Step Two Articulating Vi sion Mission The vision, mission and objectives of a firm are the basic elements of strategic management. Sadler (31) says that the main difference between a vision and a mission is that while the vision focuses on what the firm plans to achieve in future, mission statement is concerned with what the firm is doing now in order to achieve its objectives. The vision of a firm is always very important in charting the path to be taken by the firm. Emirates’ vision statement clearly demonstrates the far this firm sees in the competitive electronic market. The vision statement of Emirates is based on leadership and ambition. The vision is envisaged on coming up with ambitious projects and new ideas that would enable the firm offer its customer’s new products with maximum satisfaction always. As such, he should be above structures and systems, and not subordinate to them (Kline 28). This vision has seen this firm become very competitive. This has been its driving force in in novations and creativity. Based on this, the firm has ensured that it remains relevant in the market by introducing new products with advanced features. The mission statement of Emirates Airlines may not pass as a standard mission statement. This is because it is a list of products that this firm produces, its commitment to a green pollution free world, and what it does in ensuring that they remain competitive. However, by the close of this statement, there is another statement that explains its commitment to business travelers, various professionals, and general consumers in providing them with desirable products that are able to meet their desires. Step Three Assessing the Situation In strategic management project, there are always three important conditions that should be assessed in order to come up with a clear plan. The first is always the past incidents or activities that had an impact on the firm’s current position. The second is the firm’s current position th at would define its future.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Lastly would be what the firm’s plans for its future based on the past and present situation of the firm. Assessing the situation is always important in determining the strategic position of a firm. The following SWOT analysis is important in helping assess the current situation of the firm. SWOT analysis is one of the important tools that are very popular in analyzing a company. It helps in analyzing firms based on the existing internal and external factors. SWOT analysis would be very valuable in analyzing Emirates Airline. In order to bring more understanding of the firm in this competitive market, a SWOT analysis would be appropriate. It would also help in understanding the strengths and weaknesses that the firm has. Strength of this firm that would translate to increased profitability is a positive image in the market due to its environmental friendly projects. The world is increasingly becoming sensitive of the impact of various business units on the environment. The co ncern is emanating from the fact that it has been confirmed beyond any reasonable doubt that various multinational companies are polluting the environment at a very dangerous rate Sadler (65). Various environmental conservation projects are expected to give this company a different image in the market. This company will be seen as a firm that is smarter in its environmental strategy. The market will be convinced that this company is not just interested in making profits, but also turning the society into a better place. The firm will easily attract additional customers who are determined to make a positive difference in their society. This is because they will view this firm as one that helps in conserving the environment. They will consider the purchase of the firm’s product as part of environmental conservation. As a result of this, the firm will develop a strong base of loyal customers. This firm may also take this advantage to reach out to the international markets. The p roject would give this company a moral right to claim that it is a champion of a clean environment in the entire world. The firm has a team of dedicated and qualified staff who are able to front all the interest of the firm both in the local and regional markets. Despite the above strengths, this firm has some weakness. The first weakness that this firm has is the financial challenge. The initiative of managing the environment is very challenging financially. It would cost this firm, large sum of money if it would sustain such projects over the years it expects to operate in this market Grundy (92). The members of this firm expect to work in collaboration with other firms in order to clean the environment. The team may not have the capacity to rid the environment of all the electronic wastes, unless it is supported by other agencies within the local society. The local government must be convinced to participate in such projects actively. Other environmental agencies would also be in vited to take part in the elimination of such wastes as plastic materials. The fact such the projects would involve partnership with other firms; success of the entire process may be jeopardized. Success would be pegged on how determined the other partners are in fulfilling their duties. The firm has a number of opportunities in the external environment. In the local market, this firm has managed to build a large base of loyal customers, especially in the cities of Abu Dhabi and Dubai. The Emirati government has strongly appreciated the move of this firm to help improve the environment of this country, a fact that has earned it a large base of customers. The Emirati government has maintained a very stable political environment. This means that the business environment is free from any political unrest that may disrupt normal business operations within the market. This has created a business environment that is very peaceful to various firms in the country. The firm also enjoys an ec onomic growth in this region that has increased the purchasing power of the consumers. This increased purchasing power has helped the firm to increase its operations to regions beyond its borders. The emerging technologies have also helped Emirates Airline in its operational strategies. The firm has adapted the emerging technologies in its operations, a fact that has helped it increase it efficiency. This firm faces a number of threats in its operations. Threats may not be predictable in this industry, though the firm may try to reduce the possibility of occurrence. The first threat that this firm faces is price wars in the market. The strategy of the firm to charge lesser prices for its products, especially to those consumers who have shown resolve to combat environmental degradation may not pass unnoticed by the local firms. There is a possibility that the competitors may consider this move as a strategy that this firm uses to charge cheap for their products. The impact of this is that the competitor may respond by equally lowering their prices in the market. Such price wars are always dangerous to the prosperity of a business. The initiative may fail to make any serious sense. However, this threat has been minimized by introducing other responsibilities for the project, and the invitation of the whole society to participate. Emirates Airline also faces the threat from the emerging technologies. The emerging technologies are beneficial to the firm. However, they can pose serious challenge to the firm if the firm fails to select the appropriate technology to apply. Applying a wrong technology may cause serious negative consequences to the firm. Late application of the emerging technologies may also render such a firm less competitive in the market. This firm has been forced to spend a lot of financial resources to sustain the force of emerging technologies. Step Four Developing Strategies, Goals, and Objectives Miller (56) says that it is important for a fir m to develop functional strategies that can help it achieve its vision within a competitive environment. Emirates Airline has adopted diversification and partnership strategies. It is important that a firm develops different lines of products that can cushion it in case one of the lines is experiencing a dry spell. Emirates Airlines stated out as a passenger carrier firm. However, as time went by, this firm realized the importance of diversification of its products. Taking research and development as one of the important aspects of the firm, Emirates Airlines has managed to develop new products to the market, extending its line of production. The firm currently has a series of products targeting various markets. Some of these products include different classes of the planes, the cargo plane and other currier services. This has enabled this firm to operate as a multi-business firm. This way, it is able to reap maximally from one line in case the other experiences a low season. In its early year, it entered into a joint partnership with Qantas to ensure diversification of its products. This resulted in huge profits, though this partnership is yet to get deep rooting. The following are some of the objectives of this firm. To be the leading airline in the entire region of Middle East and beyond. To increase its market share within this market. To diversify its products in order to bring in new market segments. Step Five Completing the Written Plan Strategic management of projects will only be considered as complete if there is a clear success after implementation. It is important to have a clearly written plan on how this can be achieved within a stipulated timeline. Having a written plan on how to undertake a given strategy within a firm is important. The management of Emirates Airline should have a clearly defined plan written in a way that is unambiguous. This written plan should stipulate all the activities that are to be carried out within the firm. Having a clearly written plan would not only be vital to the top management of the firm, but also lower cadre employees. The entire group of employees would base their actions on this written plan. It is through this that the plan can be executed based on the vision, mission and objectives of the firm. Desvaux, Martin. â€Å"A Synopsis Of Clive Ponting‘s: A Green History Of The World.† Optimum Population Trust Journal. Vol. 5-10. (October 2005 – April 2010): 45. Web. Freeman, Edward. Strategic Management: A Stakeholder Approach. New York: Cambridge University Press, 2010. Print. Grundy, Tony. Strategic Project Management: Creating Organizational Breakthroughs. London: Thomson Learning, 2002. Print. Kline, John. Ethics for International Business: Decision-Making in a Global Political Economy. New York: Routledge, 2010. Print. Miller, Roger. The Strategic Management of Large Engineering Projects: Shaping Institutions, Risks, and Governance. Cambridge, Mass: MIT Press, 2 000. Print. Sadler, Philip. Strategic Management. London: Kogan Page Publishers, 2003. Print.Top of Form