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Kuwait Airways: The Dual Treatment - Essay Example

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The researcher of this essay describes the Kuwait Airways, that is a national airline owned by the government of Kuwait and the market niche for Kuwait Airways, that has mainly involved wealthy and corporate clients focusing on higher-end market in the country…
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Kuwait Airways: The Dual Treatment
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"Kuwait Airways: The Dual Treatment"

Download file to see previous pages In addition, the government bureaucratic structures that the company has to operate within constitute threats to the company, especially in regard to accomplishing its goals. Another major problem the company has to deal with includes government officials’ interference and exploitation of the company at the expense of its success. Lastly, inadequate budget that the company has to operate with affects the activities and expansion goals of the company (Kuwait Airways, N.d). On the other hand, minor problems in the company may include employee compensation, acquisition of new markets, diversification of opportunities, increased costs of fuels, poor working conditions in the company, and large number of workforce in the company. Available alternative solutions Different alternatives are available that can results into transformation of KAC. First, the company can opt for privatization, although this remains a sensitive issue, given the likely impact on the employment opportunities for locals. Local employment remains one of the political ‘hot’ issues the government would want to deal with sensitively. Another available alternative for the company is to undertake and facilitate drastic organizational restructuring where non-performing units that are redundant should be eliminated. In line with this restructuring, the company should aim at enhancing lean organization structure that has systems that perform effectively and achieve results in the most efficient way. Another available alternative is to carry out organizational management change where the aim should be to equip the company with appropriate, competent, and experienced managerial manpower. In...
Today, Kuwait Airways Company is faced with numerous challenges that affect its operation and progress in the new challenging business environment. Many of the problems of the company emanate from government bureaucracy structures and were described in the essay. Due to this, the company has to operate under difficult conditions, ranging from inadequate funds and resources, increased operating costs, and fierce competition from competitors. Moreover, the company faces issues with workers’ labor unions, since it has addressed employees’ issues in inappropriate way, interference of the government officials in the operation of the company. KAC constitutes a perfect example of public organization faced with dilemma in the modern world, characterized with fierce competitiveness strategies and efficient sustainability strategies. However, unlike other organizations in the private sector, KAC is disadvantaged in that bureaucratic nature of government operations affects its activities. Numerous alternatives are available for the company to incorporate in an attempt to improve its operation, but given that the company is public, political interests are likely to dominate at expense of everything else. Therefore, it is wise to pursue strategy that has ability to incorporate both public needs and market demands of the day. Due to this, it is suggested that by adopting a hybrid strategy of organizational restructuring, KAC will be able to transform into a competitive organization in the market. ...Download file to see next pagesRead More
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