Organisational and strategic management project - Essay Example

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Organisational and strategic management project: The acquisition of competing business BY YOU YOUR SCHOOL INFO HERE DATE HERE THE ACQUISITION OF A COMPETING BUSINESS TABLE OF CONTENTS A. Background…
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Download file to see previous pages 4 1.3 Analysis of Factors Affecting Strategic Plan………………………………….. 7 2.1 Strategic tools to audit process............................................................................ 8 2.2 Review of stakeholders and their influence........................................................ 9 2.3 Analysis and evaluation of strategic position...................................................... 9 3.1 Alternative strategic options................................................................................. 10 3.2 Justification of Strategic Options for Revised Strategic Position…………...... 11 References THE ACQUISITION OF A COMPETING BUSINESS A. Background This strategic management project identifies the strategies, organisational restructuring, auditing practices and potential strategic alternatives required to acquire a competing business in the airline industry. This is industry is considered an oligopoly, in which there are few firms, significant dependency on marketing to achieve competitive advantage, and significant rivalry between firms in terms of pricing and service delivery processes (Javanmard 2009; Boyes and Melvin 2006). In order to maximise competitive position, acquisition of existing companies on the market reduces risks to the business and further provides for consolidation of existing processes and services for cost recognition and value chain efficiency. In order to make an airline acquisition successful, the business must identify its key stakeholders, determine the specific aims and objectives for the long-run plan, establish a quality control and evaluation system post-acquisition, and analyse the entire value chain related to operations, supply chain, information technology and human resources. A well-constructed strategic plan includes all dimensions of business processes, systems and culture that will impact the potential synergies achieved through acquisition such as cost, efficiency and productivity. The report highlights all dimensions of a strategic acquisition of a competing airline company in the oligopolistic market with an emphasis on evaluation of strategic plan. 1.1 Current strategic aims and objectives The business acquiring a competing firm is a low-cost carrier with a no-frills service concept with lean characteristics related to supply, service and staffing, and fleet procurement. It is modelled after RyanAir and its low cost model that provides low prices to customers through similar philosophy. The business, by being able to reduce dependency on luxury services in flight and eliminating airport lounge operational costs, gives the ability to offer customers dynamic pricing that outperforms large airline carriers in the market. The aim is to expand the brand presence of the airline to new markets for higher sales revenue through the acquisition of new human capital and fleet availability. The objectives are: Create synergies in cost related to consolidation of existing maintenance crews in relation to training and knowledge sharing of expertise Expand service capacity by incorporating acquired human capital in information technology to improve booking and ticket sales services Improve cultural development through diversification efforts to enhance corporate image, corporate social responsibility, and improve opportunities for external investment through human capital development and culture. In order to make this a success, the airline must devote considerable short-run capital into developing a competent human resources system, ...Download file to see next pagesRead More
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