Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Managerial Economics - Traded Firm and the Global Competition - Research Paper Example

Comments (0) Cite this document
Topic: Managerial Economics - Traded Firm and the Global Competition The airlines industry is a large and booming industry which facilitates growth, international trade, international investment, accelerates tourism. It can be considered as an apex tool of globalization occurring in several other industries and developing them as well…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
Managerial Economics - Traded Firm and the Global Competition
Read TextPreview

Extract of sample "Managerial Economics - Traded Firm and the Global Competition"

Download file to see previous pages In the leisure market due to the availability of large aircraft like Boeing 747 has made it very convenient and affordable for the common people for travelling and exploring new destinations for luxury purposes as well as business needs (The Airline Industry, 2012). With enormous growth in the airline industry the governments of many developing countries are reaping mammoth benefits and utilizing those benefits in spurring massive development in different sectors of the economy (The Airline Industry, 2012). But with this extensive growth many new potential competitors (airlines companies) are infiltrating the industry and there exists cut throat competition. The companies who are thriving in the industry are developing and implementing strategies on a daily basis for gaining competitive edge over one another. The company who loses its edge comes out of the market and has to shut down its business operations. The airlines industry is almost a perfectly competitive market where each players influence is minimal. The paper will discuss the market dynamics of Etihad airlines which is an Asian airline with the price elasticity of its products, cost structure, strategic decisions and recommendations which will allow the company to strive in this highly competitive airlines market. Propulsive expansion in the Asian airline industry As Etihad airline is an Asian airline and so highlight will be entailed on the current Asian airline industry. The Asian airlines industry despite of some exceptions have encountered tremendous recovery from the year 2008/2009 which was predominated by deep recession which adversely affected the global demand for air travel and air freight. There has been an escalated expansion in the numbers of passengers, premium travels and so on. The load factors of Asia Pacific airlines have recovered and have surpassed the peak levels of 2007. A large part of this can be attributed to the cautious move made by these airline companies in reinstating the capacities cut during the economic downturn. This has led the industry to either raise ticket or the cargo charges or that of reducing the discounts previously offered. The rise in the number of passengers and higher traffic has yielded positive results reflecting in the operating profits for most of the airlines. Although the hike in the jet fuel prices have been a symptom of worry for the airlines. Since the year 2009, the price of the jet fuel has multiplied around two times keeping in line with the rise in the price of the crude oil. Higher fuel prices are indeed an important constraint which hampers the present profitability as well as the future growth trajectory of the companies (Seah & Yusof, 2010, p.1). Etihad airways -Legacy Etihad Airways is a national airline of United Arab Emirates. In eight years the airline company has been able to establish itself as one of the world’s leading airlines company. The airlines company was established by Royal (Amiri) Decree in July 2003 and has been able to establish itself as fastest growing in the commercial aviation history. The airline’s fleet of around 66 aircrafts has the operation capacity of 1000 flights per week. The airline provides serves unparalleled network of around 84 passengers and cargo destinations in areas like Middle East, Africa, Asia, Australia and North America. The company also owns around 30 percent of airberlin which is the sixth largest carrier and 40 percent of Air Seychelles. The ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Managerial Economics - Traded Firm and the Global Competition Research Paper”, n.d.)
Managerial Economics - Traded Firm and the Global Competition Research Paper. Retrieved from
(Managerial Economics - Traded Firm and the Global Competition Research Paper)
Managerial Economics - Traded Firm and the Global Competition Research Paper.
“Managerial Economics - Traded Firm and the Global Competition Research Paper”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Managerial Economics - Traded Firm and the Global Competition

Recognized and Unrecognized Managerial Leadership

The changing roles of management in the current era of rapid globalization has been succinctly articulated in the two articles: ‘Recognized and unrecognized managerial leadership’ by S. Sjostrand and M. Tyrstrup; and ‘Why hard-nosed executives should care about management theory’ by Clayton M. Christensen and Michael E. Raynor.
 Leaders create visions and goals whereas the managers and administrators work towards achieving them.

Organizations are characterized by the unique culture that is inherent in the overall working of the organization. Discussion of leadership with reference to a large organization is as important as that of a small one for the simple reasons that the leaders with...
6 Pages(1500 words)Report

The Development of a Single Global Culture Will Benefit Humankind

Social relations show spatial transformation across the world, encompassing both the hazardous and beneficial effects of globalization (Held,2000) and are marked by the intensification of communication flows (Cochrane and Paine, 2004). Such flows as an increase in broadcast activities, satellite channels, Internet, telephony, people to people contact, migration, and proliferation of transnational companies are playing an important role in the development of a single global culture. There is an emergence of diasporic and shared cultural forms across the world that are aided by increasingly porous national boundaries.

According to Cochrane and Paine (2004), the lives of people in one part of the world are affected by even...
6 Pages(1500 words)Coursework

Global Environment Change

A number of fields are involved in the study of environmental change, such as chemistry, physics, biology, oceanography, etc. In this paper, some of the major global environmental changes will be studied and explored and implications will be provided for the sustainability of the global environment.

Responses to the global environmental challenges have become one of the heated debatable matters around the world, as a number of organizations, researchers, and nations are endeavoring to sustain the continuity of the global environment, where is harmed by different natural and manmade causes. In order to come up with an effective solution, it is very important to understand and go into the core of the global problem. In th...
7 Pages(1750 words)Coursework

Global Culture on Fast Track

Lifestyles are changing fast to invite international practices. Youths in large numbers are instrumental to change to live in a free environment. They are resisting ‘no change’ attitude and fighting for the new environment where they can express freely what think right to make a modern culture. The change is undergoing automatically and being accepted by most of the resistant quarters.

Globalization does not create a common culture, values, attitude or beliefs as mentioned above. It gives way to a single arena in which people of different cultures interact and present their values for comparisons, analysis, acceptance or rejection on certain standard yardsticks. This is the internationalist version of global...
6 Pages(1500 words)Essay

Economics or Ethics

Several CEOs in America have in coalition with top managers deviated from the norms of corporate governance and caused immeasurable woes to the stakeholders. Using their power and ego they chased the wealth for personal gains without any concern for the shareholders or other stakeholders of the company. Enron, the world’s largest energy trader at one time, had to file bankruptcy under Chapter 11 when about 5000 workers lost their job (Bhattacharya, 2004). Arthur Anderson, one of the big five auditing firms was charged to have colluded with the management to misappropriate funds and project a picture different from the reality. Income was inflated and then all concerned papers were destroyed. The leadership at Enron was conce...
6 Pages(1500 words)Assignment

Contemporary Managerial Issues in Accounts and Finance

Political theorists like Veblen argued that the separation of corporate ownership from control generates a transfer of power from a minority of stockholders to a group of decisive owners who have the control over the way of access to credit and finance (Roe, 1994, p. 5).
However, contemporary analysts of corporate power contested that dominance and ownership in modern corporations have shifted to a property-less group of managers. Consequently, this current shift of power and control in large modern corporations could usher in ultimate preoccupation over profit rather than non-financial motives. Furthermore, the separation of power and ownership will lead to the destruction of the traditional legal theory of property which en...
23 Pages(5750 words)Literature review

Global Warming and Food Production

The carbon fertilization effect of increased carbon dioxide concentration in the atmosphere has an impact on plant growth, which benefits plant growth by facilitating photosynthesis, cannot balance the complex impact of increased temperatures around the world. Thus, although some regions will benefit from global warming, a total reduction in global agricultural production will result. This essay presents a discussion about the impact of global warming on agriculture and food production around the world.
Although the history of the planet earth suggests that for the last million years ice ages have been interspersed with warmer periods, evidence suggests that the average rate of global warming within the recent past has accele...
14 Pages(3500 words)Assignment

The Importance of Employee Empowerment in the Global World

Empowerment is the authority to make decisions within one’s area of operation without having to get approval; from anyone else. Here the operatives are encouraged to use their initiative to do things the way they like. To this end, the employees are given not just authority but resources as well so that they not only take decisions but implement them quickly. This empowerment means giving the employees the authority to make decisions and providing them with financial resources to implement these decisions (Koch & Godden, 1997 11).
Employee participation and empowerment participation means sharing the decision making power with the lower ranks of an organization in an appropriate manner (Lashley & McGoldrick, 199...
9 Pages(2250 words)Assignment

Managerial Economics and Business Environment

Once the above said subject matter is clearly sorted out, the next emphasis would be on the concepts like the opportunity costing, incremental principle, marginal principle, discounting principle, the principle of time perspective, and calculation of economic profit as the guidelines to the scope of managerial economics. (Surender. V, 2008).
To start with, we consider a firm for which different processes have to be carried to achieve its objectives of profit maximization (assuming that all the organizations work with the view to maximize profits). If firms from different sectors are identified simultaneously, then the working of the economy as a whole could also be analyzed which in turn is useful in the decision-making proce...
15 Pages(3750 words)Assignment

Global Challenges for Business Management and Leadership

This section aims at understanding the challenges faced by the United Nations due to political conflicts. In the summer of 2007, an issue in the Politically Speaking, the DPA had highlighted the increased focus on the conflict meditation. This report had also highlighted the interview with the Under-Secretary-General for political affairs. In the interview, he defended the UN against all the criticism and he also highlighted the need for finding political solutions for issues around the world. The interview also highlighted the importance of results to show the effective working of the UN. This interview also highlighted and urged critics to look at the positive along with the negatives of the UN. “The UN has knowledgeable a...
7 Pages(1750 words)Research Proposal
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Managerial Economics - Traded Firm and the Global Competition for FREE!

Contact Us