Fly Emirates Analysis - Case Study Example

Running header: Emirates Student’s name: Instructor’s name Subject code: Date of submission: INTRODUCTION The Emirates Airlines is a company which is under the Emirates Group dealing with air travel. The group is owned solely by the government of the United Arab Emirates. The center of the operations of the airlines is the Dubai International Airport. This is where all the operations of the airlines begin and end. It was founded in 1985 and commenced its operations on 25th October the same year. With its headquarters based in Dubai in the United Arab Emirates, it has seen massive growth and development which has enabled it to increase its fleet to a high of 221 planes and it has 142 destinations. This has made it the largest airline in the Middle East as it operates a record high 3400 flights per week in more than 78 countries in the world. This has made it to be a force to reckon with in the global arena and in the global aviation industry. MISSION AND OBJECTIVES The mission of the company is usually to exist in order to deliver the best in-flight experience in the world. The mission statement of the company is usually the driving force behind its success. This is because it directs the activities and activities of the company in line with the goal attainment process. The company is characterized by being built on a strong and a very stable leadership team. The team is a very ambitious one and is involved in the everyday decision making process of the company. This has been the leading reason for the continued growth of the company. The company seeks at seeing to it that it offers an exceptional one of a kind journey to the customers from start to finish. OPERATION STRATEGIES The management of the company believes in the success of an employee oriented development system. The airline company seeks at taking good care of their stakeholders, the employees and the customers at large. This is because they believe that it is through them that prosperity and continued growth and development will be achieved. The company has a vision of maintenance of utmost responsibility in all aspects and in all its activities. The human resource of any company especially so those in the aviation industry is the backbone of the companies. This is due to the fact that they have direct contact with the customers and that it is through them that the values of the company are passed to them. The company seeks at offering exemplary customer service to all its customers. The maintenance of the employees have been improved by this objective. They have been provided with benefits by the company. Such benefits include comprehensive health plans and all-expense paid maternity and other health leaves. The company believes that through motivating the employees, it will soar to greater heights in all aspects of their operations. They have as a result developed plans of utmost inclusion of the employees in all the decision making processes. When employees feel motivated, they are more prone to working even better. Feedback receiptmechanisms have been put in place where suggestions, complaints and compliments from the employees are well received and handled in a timely manner. Through this, any cases of conflict that may arise from the employees are dealt with in timely form and in a better way. The vast form of their operations and similar entries into other related fields make the company to rely much on individual efforts of the employees. Other industries which it has had entry into include hospitability services, airport services, tour operator operations, catering and engineering services. This is what makes it employee oriented. By the end of the year 2011, the company had employed a total of close to 39000 employees in its operations. This number consisted of cabin crews, flight deck crew, engineers and other specialized employees. It has over time improvedthe remuneration which it gives to its employees in order to increase the levels of morale for them and also in order to maintain them and hence not lose them to the competitors. This has borne much fruit for themas they have become the company with the best employees in terms of remuneration and training. The company has put to full use the most up to date marketing systems. This is in order to attract all the most customers and to pass the values of the company to the world at large. There has also been a push to show the global nature of the airlines. For example, its slogans have much that they tell about the company. In 2008 for instance, the slogan for the company was Fly Emirates. To over Six Continents. This was to show the global nature and the extent of their progress. In 2012 similarly, the slogan had much it told. It was; Fly Emirates. Meet Dubai. This was in a bid to promote the city of Dubai as a favorable destination. Through marketing such a place as Dubai where most of its operations are controlled and run from, it has achieved much in terms of progress and success. The uniformed staff of the airline company also have unique attire. This is in order to distinguish them from the rest. This shows the unique nature of the company and its focus in diversification. The company has used different advertising tools to its advantages. By being the official sponsor of various events, it has acquired great recognition globally. For example, the home ground for the Arsenal football club which is a football team in England is named the Emirates from the company. It is also the proud sponsor of various football teams’ kits and this has made it develop its liking among football fans. For example, it is the official sponsor of the Arsenal, AC Milan, Real Madrid, Paris Saint Germaine and Hamburger Football clubs. These are big clubs with large fan base in their countries namely England, Italy, Spain, France and Germany respectively. The company has been able to market itself well in this way. It is also a major sponsor of the Emirates team New Zealand which is a strong challenger for the sailing cup, the America’s Cup. It can be right to say that the company has succeeded in capturing recognition andsuccess through its sponsorship campaigns and the fruits are being harvested at the moment. Popularity has developed to the millions of supporters of the various tournaments and teams which it has sponsored. It is through this that it has become the fan favorite and the most preferred airline to the fans. COMPANY CULTURE The company has a brotherhood form of culture. This means that it has a trend of one person being the protector and guardian to the other. This has helped the company to excel as it has fostered good relationships between the people and stakeholders in the company. This has also helped improve the relations between the company and the outside community which is comprised of the customers and the public at large. This has helped also in improving the quality of work of the employees and helped foster the goal attainment process. This culture is embraced by all and is the backbone of the success of the company. STRATEGY FORMULATION AND IMPLEMENTATION The pest analysis of the company has some big results which it shows. On the environmental basis, the company has put in place effective measures which help in seeing to it that its operations are environmentally friendly. This has been mostly through the control of the industrial emissions of the airplanes which it uses. It has set techniques that seek at seeing to it that they are environmentally friendly and that they are not harmful in any way. The political set up of the company is stable based on the fact that it is owned by the government of the United Arab Emirates. The company should however alleviate full reliance on the government as instability in the politics of the country would lead to its disintegration. It should standby itself independent of any favors that it may get from the government. On the other hand, the economic setup of the company is favorable for massive expansion. There has been an increase in the number of people who can afford and are willing to use air transport. This makes the market penetration of the company to be easy and successful in the long run. It should hence put in place mechanisms as to meet the expected increase in the customer umbers. Such strategies include increasing the size of its fleet to meet a higher capacity of customers. The social set up of the company is favorable for expansion. This is because it is socially responsible for its activities and to the communities at large. This has been evidenced by the continued support for the needy in the society. Through social acceptance, it will be able to make it in its operations. The technological set up of the company is the most recent and up to date in the market. It boasts of having the highest levels of technology and customer entertainment levels in the world. Through embracing of modern technology, the company will be able to compete strongly and with even more vigor. The company has many strong attributes which it can use to its advantages. This are the strengths of the company. It has a very strong support from the government of the United Arab Emirates. This makes it to be a strong force to reckon with in the industry. The company also has a strong value levels among the management and the employees. The values are the form of motivation and culture needed for the continued success of the company. The company can also take to advantage the high level of skill and competence that is possessed by the staff. High skills mean that they can offer high quality of work and service to the customers which means that exemplary service delivery will be assured. The fleet of the company is also composed of the most modern up to date airplanes. This makes them a leading force in the global aviation industry. Modern airlines also mean that there is an increase in the efficiency of the operations in terms of fuel consumption, increased security of travel and improved comfort and service levels. With Dubai also becoming a world class city and tourist destination, the airline has been one of the most beneficial companies arising from this recognition and status. This is a strong attribute in that all its major controls and operations are strategically situated in Dubai and most favorably the Dubai International Airport. Global recognition also arising from the continued sponsoring trait has also made it a household name globally and this has surpassed many competitors in the gaining of such recognitionand status. There has also been a massive increase in the numbers of passengers which the airline has handled. In the year ended march the 31st 2014, a total of close to 45 million passengers had been flown by the airline. This was a massive increase from those transported at a similar time the previous year which was close to 39 million. This is a sharp indicator of the strength it has in terms of customer numbers. The company believes that over time, the customers will become loyal to the company and make it the preferred airline of choice for them. The company also has some weaknesses which it needs to work on in order to increase its market penetration. One of the weaknesses is that it lacks penetration in all the countries of the world. By not being able to fly to all the countries in the world, it is unable to meet the demands that may arise of people wanting to fly to countries which it does not fly to. By flying to only 78 of the countries in the world, this is less than half the number of countries in the globe. It hence needs to put in place strategies to see to it that it increases its destinations in order to meet demand that may arise. Many opportunities exist for this company. First, the company has its presence felt in only 78 countries of the world. This means that there are an equal or more number of new countries which it can begin operating in. this will help in increasing the returns of the company. New markets mean that it is an opportunity for the company to develop in its operations and increase the revenues which it gets from its operations. Other opportunities include the positioning of the airlines in other big cities of the world in which it has not yet entered into. Such bring with them large numbers of customers for the services of the company. There are threats which exist for the company in its expansion process. The entry and continued presence of strong competitors in the market make the operations of the company to be at risk. The competitors pose a threat in that they are employing similar strategies as the Emirates Company such as sponsoring of tournaments, football kits and stadiums. A good example is the Etihad Airways. It has sponsored such teams as Manchester City Football Club and its home ground being named after it as the Etihad stadium. The company needs to employ better tools in order to curd such competition as this. Examples of tools it can use is the advancement of the levels of technology used and the comfort in the planes. Another way is the creation and promotion of customer loyalty to the company and al its services. Through the creation of customer loyalty, the company will be able to get enough returns even in stiff competition. The future of the company can be a successful one if proper strategies are put in place. This are strategies that see to it that it is well able to meet the demand that arises in the market and that it is also able to handle the stiff competition that exists and which will increase in the future. Internally, the company should put in place a program which seeks at maintaining the levels of the employees and also reducing the turnover rates. Their skills and competences should also be improved. The management should also be employee oriented in that they should be involved in the decision making processes. This is in order for them to feel appreciated. The quality of the services offered should also be improved so as to create general attractiveness of the company. This is because it will result to the creation of loyalty among the customers. On the external environment, the company should put in place effective measures that will help curb the competition which exists. Market penetration measures should also be employed in the new markets. The levels technology should also be raised to competitive ones. This will also help in curbing the competition that exists. The geographic location of the new branches should also be strategic in order to capture the attention of the customers. STRATEGY EVALUATION The company should however be set to undergo many challenges in its operations. Some of the main challenges include competition levels that are high. The competitors are also expected to increase their levels and standards which is a challenge also to the company. Another challenge is keeping up with the high demand for consistent exemplary service delivery to the customers. This means that the standards should either be maintained at a good level or raised to higher levels and not fall. A drop in the standards translates to a loss to the company. The company also faces the challenge of keeping up with technology changes and this will be helpful in the grip of the market. CONCLUSION Through the maintenance of quality and exemplary service delivery, the company will be able to soar to great heights and also thrive in its operations. The maintenance of quality service and taking to full use the opportunities that exist and niches that may emerge, it will be able to be the best airline company not only in the region but also in the world at large. REFERENCES Monks, Robert A. G, and Nell Minow. Corporate Governance. Malden, Mass: Blackwell Pub, 2004. Print. Mallin, Chris A. Corporate Governance. Oxford: Oxford University Press, 2004. Print. Colley, John L. Corporate Governance. New York: McGraw-Hill, 2003. Print. Bamber, G.J., Gittell, J.H., Kochan, T.A. & von Nordenflytch, A. (2009). "chapter 5". Up in the Air: How Airlines Can Improve Performance by Engaging their Employees. Cornell University Press, Ithaca. "The Emirates Group". Emirates. 3 January 2011. The Economist, 2005/6. London, UK: The Economist Newspaper Ltd. (The Economist online) "Airliner World (Emirates – 25 Years of Excellence: Building a global network), pp. 28–37". Stamford, UK: Key Publishing. October 2010. ISSN 1465-6337. (Airliner World online) The Sunday Times (Emirates boss heads for bigger goals), Times Newspapers Ltd., London, 23 July 2006 "Emirates Named Airline of the Year for 2011 by Air Transport World – Airline News". etravelblackboard.com Read More