The company selected for the project is Emirates Airways. Emirates airlines is based at Dubai International Airport, UAE. It is largest airlines operation in Middle East with over 2500 flights per week. It also operates 4 of the 10 longest nonstop flights in the world. Emirates airlines is subsidiary of Emirates group which has over 50,000 employees. It is wholly owned by government of Dubai under Investment Corporation of Dubai. Airline is ranked among top ten carriers worldwide in terms of revenue & passenger kilometers. In February Air Transport world gave Emirates Airlines – Airline of the year Award. Emirates was started in 1985 with backing from Dubai's royal family, whose Dubai Royal Air Wing provided them two of the 1st aircraft. It was compulsory to operate independent of government subsidies. Emirates operates as a mixed fleet of Airbus and Boeing aircraft and is one of only 9 airlines to operate an all-wide-body aircraft fleet. (The Emirates Group, 2012) The project is about analytical analysis of Emirates Airlines. Under this project, strategic management components of Emirates Airways would be investigated. This project would detail the environment, in which Emirates Airways is operating and the factors (MACRO) affecting the Aviation Industry and how these are having effect to Emirates Airways. This will also detail the company’s design and structure and organization structure, how its structure does benefits the company and how company groups its activities. Project also outlines intensity of competitors and how does it differ across various strategic groups. For indentifying company’s competitive advantage, Porter’s Competitive Advantage Model has been used. (The Emirates Group, 2012)
Discussion with management:
There is an Association for Strategic Planning (ASP), it’s an U.S.-based, non-profit professional firm which is dedicated to advancing of thoughts and practices in strategy development and deployment, has developed a Lead-Think-Plan-Act rubric. This firm is hired as consultant by Emirates Airways for both strategic planning & implementation. The company has seen substantial changes after working on maps of their process. The company regularly works on its plans & analyzes it in changing environment & tries to adapt to such in best way possible. The implementation of plans is on operating departments, company regularly monitors performance of its operating personnel as to see whether their plans are effectively implemented and they are worth for their position. (The Emirates Group, 2012) External Analysis:
Interest Rate: There would be increase in interest rate for borrowing of new aircrafts because Organization for Economic Co-operation and Development (OECD) has decided to revise rules concerning government-backed export credits. This will hamper policies of Airlines in developing countries to finance aircraft easily. These new rules will affect Emirates airways as Emirates have been using export credit for finance of its aircrafts which are still on order & delivery will spread up in coming decades. However, Emirates have great business & good balance sheets for last so many years, it will have good credit & hence, they would be accessible to low cost of financing. Demographic: It means characteristics of population in terms of statistics. These data are mostly used in marketing of product & services in the business area. Demographic changes tell historical changes in population over time. These data are very much useful for Emirates in its marketing strategy as the change in population i.e. increase in population. It also examines home ownerships, age, disabilities, mobility, employment status. These all data would be very much useful in framing strategy to target consumers. An attractive plan needs to developed which should be made according to such examination of demographic data. The data can reveal how much people...