Business Management - Good Life Airlines Company - Research Paper Example

? New Project Table of Contents Introduction 3 Mission ments 4 Comparison 5 Evaluation and Critique 5 of the proposed company and a description of its business/service 6 Mission statement 6 Business Model 6 Business Strategy 7 References 9 Introduction The world of the 21st century is progressing at a rapid pace, on the line of fast change and tremendous development. It is important to highlight that the fast change of the current century are being powered on the lines of highly connected telecommunications technology that has advanced in a tremendous way in the recent past. It needs to be mentioned that throughout the previous decade. There was a tremendous surge in the penetration of internet - based connectivity in various parts of the world. Because of the rise of a internet based connectivity, it needs to be mentioned that the world has transformed into a single connected global entity. This has increasingly paved the way for easy synchronization of various trends related to globalization that are emerging from the different corners of the world. (International, 2011, p. 32) It needs to be mentioned that because of the trends of globalization, there is a tremendous amount of demand for new kinds of product and services that are emerging from various new as well as well established countries and economies around the world. As a result of this surge in demand, there is a high amount of business opportunity that is emerging in the global marketplace. Many new as well as established companies that are located in various geographical locations are increasingly focusing on the process of market expansion as well as the process of entering in the new markets to capitalize on the new business opportunities (Tsai, 2003, p. 158). In this assignment, the focus is on developing a business model for a new company while studying two companies based in the region of United Arab Emirates. For the purpose of doing that, the airline industry of UAE region has been selected. The two companies that have been selected from the aviation industry of UAE are Arab Emirates and Air Arabia. In explaining in a brief manner about the two companies, it can be stated that the airline company Emirates is the flagship carrier of the Emirates group. The airlines provide air transportation services to around 74 countries in six different continents. As of the year 2012, the airline company is credited with being the fourth largest company in the world in terms of flying international passengers as well as the amount of distance covered all around the globe. Talking about the other company, it can be stated that Air Arabia is the largest low cost carrier (LCC) in the Middle East and the North Africa region. The company connects around 82 destinations currently which includes various locations of Middle East, North Africa, Europe and Asia. The value offering of the company is comfort, reliance and great value for money kind of a service (airarabia.com, 2013). Mission Statements While discussing about the mission statements of the two companies belonging to the airline sector of the UAE region, it is very important to understand the meaning of the terms of mission and vision. The vision of a company is the long term goal of a company while the mission of a company is the short term goals of the company. To fulfill the objectives identified in the vision of a company, it is very important to fulfill the mission based goals. In discussing about values of Emirates, it can be stated that the focus is on building a strong and stable leadership team, which will play a major role in the process of designing ambitious and calculated decisions and ground breaking ideas which will help in the creation of a great company (theemiratesgroup.com -1, 2013). The vision of the company is to be the world’s most admired air service provider (theemiratesgroup.com -2, 2013) Talking in regards to the company Air Arabia, it can be stated that the vision of the airlines is to be the world’s leading budget airlines in terms of profit margin, reputation, innovation as well as operational excellence. The mission of the company is to revolutionize the air travel in the region by following an innovation driven business approach which provides a high amount of importance on value for money as well as a safe and reliable kind of an operation (Air Arabia Annual Report, 2012, p. 6-7). Comparison It can be stated that both the companies’ mission reflects that they focus on providing high quality services to the customers and become the most preferred airlines in the segments which are serviced by them. In talking about the theme that is common among the two airlines, the focus is on the issue of delivery of high quality services to the customers to win their appreciation and satisfaction. The points of difference lies in the factor that the two airline companies basically targets two different segments of the same sector. While the airline company Air Arabia provides low cost services mostly to the customers of the MENA region, the Emirates Airlines focus on providing high quality services to the customers all over the world. Evaluation and Critique After evaluating the mission of both the companies of the airline sector of the UAE region, it can be stated that the long range goals of the company Emirates does not reflect the company’s focus on holistic excellence. For becoming the most admired air service provider on a global level, the company needs to achieve improvement and high level of unbeatable excellence on all aspects of the business. This particular aspect was not covered under the vision or the mission of the company. Talking specifically in regards to the low cost airline, Air Arabia, it can be said that the objectives and goals associated with the mission are very distinctly and clearly highlighted. In short, it can be stated that this particular airline company’s mission is largely an example of a clearly specified and well mentioned mission. Title of the proposed company and a description of its business/service The title of the proposed company is Good Life Airlines Company. The company will belong to the airline sector of the region of United Arab Emirates. It needs to be stated that the company will be focused on providing airline transportation as well as cargo services to the locations all around the world. It has to be stated that the company will be focused on targeting the customers who will be looking forward to travelling to various regional airports after having travelled to the international airport points. The unique selling proposition of the company is the highly affordable rates and the pleasant service provided to the customers of various global markets. Mission statement The mission statement of a company will be complete and appropriate when it includes the focus on mission, vision, values, which are basically the pillars of strength and survival for a company. In this case, the mission statement for Good Life Airlines Company will be to provide affordable air travel to global customers, while doing business in a safe, ethical and healthy manner. Business Model In elaborating on the business model for the airline company Good Life Airlines Company, it can be stated that the airlines will be focusing on providing affordable air travel services to various smaller air destinations all around the globe. The main business idea is to transport passengers from various major airline hubs, a market which is not tapped to the fullest extent by the large airline service providers. The target market for the company’s services will be the smaller air destinations, while the target customers will be basically the travellers who are commuting long distances in various large players of the airlines sector who is more focused on providing services to the major airport hubs of various countries and continents of the world over. While discussing about the resources that are needed for providing the services to the airlines customers of both individual as well as corporate nature, it can be stated that the resources are highly expensive in nature. The most essential resources that are required are the aircraft carriers, whose acquisition costs are very high. In order to manage that, the company will be focusing on starting its services by leasing a small number of aircrafts from the airline manufacturers around the world. For the purpose of integrating and managing the service portfolio of the company with a smaller number of resources, it can be said that the company should focus on providing a limited amount of services in very specific global markets, where the flow of air travellers are very high. In the first five years, the company will be expecting a 25% return on the total capital invested. Business Strategy For the purpose of effectively generating an attractive return of around 25% on the capital invested, it can be stated that the company needs to effectively manage its resources as well as the operating costs. Since the main operating assets of the airline sector needs a constant supply of fuel reserves, the price of which can be fluctuating in nature because of the various macroeconomic influences, the company will focus on developing a partnership with the government of UAE so that they can attract subsidies on aviation fuel. The partnership with the government will help in lowering the fuel acquisition cost. Also, as a strategy to develop on fast growth, the company will try to develop alliance and code sharing agreements with large airline players. This strategy of the company will help in building the passenger flow for the airline services and will contribute to the fast revenue generation for the company. References Aacsb International. (2011). Globalization of Management Education: Changing International Structures, Adaptive Strategies, and the Impact on Institutions : Report of the AACSB International Globalization of Management Education Task Force. UK: Emerald Publishing Group. Hirschey, M. (2009) Managerial Economics. 12th ed. USA: Cengage Learning. theemiratesgroup.com -1. (2013). Our Vision & Values. Retrieved from: http://www.theemiratesgroup.com/english/our-vision-values/our-vision-values.aspx Air Arabia (2012) Annual report 2012. Retrieved from: http://investor-relations.airarabia.com/sites/default/files/AA%20AnnualReport%202012%20En.pdf\ theemiratesgroup.com -2. (2013) Annual Report 2013. Retrieved from: http://www.theemiratesgroup.com/english/facts-figures/annual-report.aspx airarabia.com. (2013). About Us. Retrieved from: http://aboutus.airarabia.com/ Read More