Organisational and strategic management project - Essay Example

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, improve operations for maintenance team development and knowledge sharing, and also implement more effective IT capacity and growth to provide more efficient and productive service delivery.

1.2 Evaluation of the component parts of the strategic plan

            Because the organisation will be sustaining new customer routes, altering service concept and delivery with a higher reliance on information technology for service delivery and diversifying culture to establish a new method of doing business, the mission and mandates must first be constructed. Nutt and Backoff (1990) developed the notion that learning is an emergent philosophy, by examining the history of where the company has been in order to determine the most appropriate methods to achieve future gains. This, first, involves an evaluation of the company’s past financial performance and its organisational and human resources failures and successes occurring over time as it relates to culture especially (Nutt and Backoff).

            The strategic planning model in Figure 1 illustrates how critical components related to mission, values statements and corporate vision are inter-twined with process functions, goals and core competencies as well as competitor analysis. Historically, limited service led to lean staffing in which human resources could not respond to irregular situations occurring in the external customer market (Wong 2009). Prior to confirming an acquisition was an appropriate strategic option, the business conducted the majority of its maintenance practices through outsourcing, thus placing the human resources/training processes on partnered organisations. Now that the business will be adopting new talent in maintenance, the business must develop a training and knowledge-focused organisation that devotes more finance and labour investment into the HR function. Mission must include a conceptual language that describes new cultural development practices and more human resource investment to gain cultural unity and prescribe employees to the new vision and mission for the business if the airline hopes to create workable operational plans and structural changes.