Strategic management of Etihad Airways

Topics: Strategic management, Airline, Strategic planning Pages: 12 (4035 words) Published: April 6, 2014
1.0 Introduction
Abu Dhabi, Etihad Airways, the national airline of the United Arab Emirates to conduct function was established in 2003. "Etihad" is Arabic, is a shortened form of the United Arab Emirates. It’s headquartered in Khalifa City in Abu Dhabi during the major airlines Abu Dhabi International Airport operating from the base. Besides passenger transportation, Etihad Airways, and its Etihad Crystal Cargo offers cargo services sector. It is a relatively new company Skytrax in 2009 (Skytrax) Award for Best Business Class in more than 40 global awards, as is 2.0 Strategic management process

The strategic management process is a way for companies to build strategies for helping the company to respond quickly to new challenges. This dynamic process that helps companies find new and more efficient ways of doing business. The three main elements are situation analysis, strategy formulation and strategy implementation. 2.1 Stages of strategic management process

Figure 1: Three Stages of Strategic Management Process

Strategic Analysis is a process that can be used to identify the best way to achieve the outcome that desires you or your organization, choosing the path of weakness for change. By doing a strategic analysis, the team will create alternatives to achieve the desired result, stressing the engines, and the decrease in resistance. Strategic Analysis of the SWOT analysis, PEST analysis and value chain organizations using available resources to achieve desired goals and objectives in order to determine the best way is to use a tool like. (Akku, 2013)

3.0 External Environment
3.1 PESTEL Analysis (General Environment)

Figure 2: PESTEL Analysis (General Environment)
Political factor
Due to terrorist attack, many airlines have stopped flights to certain countries such as the main countries involved with the fear of their planes being attacked Etihad Airways, like other aviation firms, has to follow strict government regulations. Economical factor

The Company also has some social responsibilities to follow. The reason is as Aviation co-exists with country’s hospitality industry, it has to make sure that hospitality industry does not get suffered. From the Airports developing countries to achieve profits, such as the economy increase, decrease depends on oil revenues by moving into new sectors, growth in tourist numbers and so on. In addition, global alliances considered as a main feature of many successful businesses of airlines, as lowers operating cost. Social factor

Also affect the airline industry. For example: increasing the world’s population, tourists and the number of educated people effect the airline industry. As a growing number of expatriates, the firm `s profits will also air more, because these people need to travel to their home country as well. As the company’s staff and passengers both come from the society, there is a social obligation in the company to work for the welfare of the public. Technological factor

Online and mobile booking and check-in services has been a common choice and increasingly used by many airline industry and also the employees who can deal with new technology are needed in every aspects of work. Environmental factor

Etihad Airways has a comprehensive environmental strategy to ensure the commitments we have made in our environmental statement are put into action. These include management of the potential environmental impacts, ensure the continuous improvement of environmental performance and explore the grief and results driven opportunities and partnerships to support a sustainable future. Legal factor

Aviation laws, labor laws, governments rules form the legal periphery for Etihad Airways. Legislative changes and constraints like safety, health legislations, and restrictions on the merger and acquisition of companies (Ytudak, 2011)

3.2 Porter`s Five Forces (Competitive Environment)

Figure 3: Porter’s Five Forces Framework

Threat of New Entrants...

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