Qatar Airways Management Strategy - Essay Example

Qatar Airways management strategy Qatar airways were established in 1994, it is now the national carrier of the of Qatar with more than 42 destination routes and more the 100 aircrafts. In any competitive market a organization must implement and strategies that create value to it. Qatar strategic plan includes extension of the airline route network and building a new fleet. The appointment of charismatic leaders that have employed an open and transparent style has led to the success of the airline in implementing its strategies due to the productive atmosphere when other sides interact regularly (Fojt 30). This has led to many of its global achievements and awards. Management strategies help to identify new opportunities for growth, like the merger between the American Airlines and US Airways which provides an exciting opportunity for further growth American Airlines and US Airways provides an exciting opportunity for further growth American Airlines and US Airways provides an exciting opportunity for further growth and connecting of customers to North America. The airline has also refocused its capacity to Africa in response to market and competition developments. During the recent years the airline has launched various global networks and destinations covering from Europe, South Asia the Middle East, Africa, Asia Pacific, North America and South America with a modern fleet and cargo aircrafts. It has made plans for its expansion with an additional frequency ad capacity to both existing and new destinations. The addition of airlines provides a major increase in the number of passengers and networks. Qatar Airways is one of the launch customers of the twin-deck super jumbo recognized for its luxurious design and as the world’s biggest aircraft capable of carrying capacity of 555 passengers. The first aircraft was delivered in 2014. The company also operates corporate jets for its executive subsidiary launched in 2009. The use of modern technology is a major advantage in the airline industries; it plays a key role in enhancing efficiency and customer services, the Qatar airways has partnered with Wipro Infotech in order to conceptualize their growth strategies. This gives them a competitive edge as they will be able to utilize Wipro’s highly technical resources, research and development centers to explore and take advantage of new technological solutions. Hamad International Airport opened I April 2014 is a project undertake y Qatar Airways designed to help shape Doha as one of the greatest regional and international aviation hub. The management has used corporate social responsibility as a strategy by administering the five pillar corporate social responsibility strategy that helps limit the impact the airline has on global climate, air and non-renewable resources. It promotes environmental sustainability ad has partnered with Educate A Child an education programme that address the plight of school children denied access to quality primary education around the world. Organizational Structure Organizational structure includes concerns such as the overall design of the organization, its positions of authority, decision-making channels and networks of roles and jobs. Strategic competitiveness is said to be achieved when the firm’s chosen structure and controls are aligned with the strategy. The airline has many divisions Qatar Aircraft Catering Company, Doha International Airport, Qatar Airways Holidays, Qatar Distribution Company, among others. The governance of any organization must provide a level of oversight that meets the highest international standard in order to stay competitive. The airline has both the board and management committees. The Management Committee is led by Chief Executive Officer and has all the leaders of the airlines and cargo business. They Work together and have the freedom to plan and execute strategies and fulfill their various responsibilities. This also allows the executives to share experience and knowledge, giving greater coherence and continuity to the overall strategy we are pursuing for the organization. The Board has a number of responsibilities that include the approval of the annual budget and business plan, the setting of financing policy and structure, leading the organization in the approach to Corporate Responsibility, reviewing the strategic framework and monitor performance and the implementation of set strategies, the board maintains an effective governance framework in the organization and safeguards the long-term values and reputation of the Company. To promote a sustainable business there is need for a system of governance that allows leaders to deploy their strategic and entrepreneurial skills in effective ways within a system of strong and discerning oversight (Airways 38). SWOT analysis Managers compare and contrast various alternatives of possible strategies against each other with respect to their ability to achieve a competitive advantage (Hill and John 10). The strategic position of the Qatar Airline maintains the airline and aviation position but this has been challenged because of the changing market situations in the airline industries. Various competition in the industry have been able to announce the establishment of their business approach in the global market which offers diversity of airline industries to cater for the needs of the passengers, cargo and shipment services. The competition also affects the strategic position of the Qatar Airline. to make sure that the company is not left behind, Qatar Airline has been involved in their expansion and technological developments. Strengths Qatar airways has the advantage of being present in oil rich state which reduces the cost spent on fuel and other fuel related cost are marginalized. It operates in over 100 international destinations ad continues to expand globally while tapping into new and emerging economies like in Africa and Asia. The airline has a strong workforce of nearly 20,000 employees who are highly trained and offer satisfactory customer services according to the many reviews and awards that have been presented to the airline. Qatar Airways has a fleet size carrying both passengers and cargo of over 100 aircraft. This gives the airline an edge over the others as it ca target audience from all over the world ad provide world class services. The ability to adapt to changing market conditions in order to maximize profit as well as listening to and identifying with consumers needs have a major milestone in the airline success. Weaknesses The airways industry is a highly competitive field that requires constant innovations and new ideas in order to gather more customers. There are many airlines globally that give Qatar airways competition. The future profitability of the airline therefore also depends on the management and strategies employed to ensure maximization of profit while using the resources available ad technological advancement. Opportunities The basis for long-term competitiveness is the ability to develop continuously new generations of more advanced airline and aviation services. Therefore, the company has open opportunities to tap into more markets as a result of the innovations ad technological advancements being introduced in the aviation industry. Localized capabilities enabling or even enhancing such co-operation will always make a difference when it comes to first-mover advantages. The growing demand all over the world is also a opportunity for the airline to invest y providing services in the up and emerging markets and economies in need of cargo fleet. Threats Rival companies like the Emirates Airline are major threats to the business. The legal and political environment in the countries where they operate in could potentially affect the business negatively coupled with unfavorable scenarios due to Government policies and regulations that may hinder the advancement of the airline. Qatar airlines are one of the most renowned airlines globally and have been majorly applauded for their services ad world class travel styles in their business and economy class. The management led by the chairman and the board of directors have made core objectives that are mostly involved in the expansion of the airline services to various destinations around the world. With the backing of the government and multiple partnerships and mergers, the airline has rise to be an international leader and influence in the airline sector. Work Cited Airways: A Global Review of Commercial Flight. Sandpoint, ID: Airways International, Inc, 1994. Print. Fojt, Martin. The Airline Industry. Bradford, England: Emerald Group Pub, 2006. Print. Hill, Charles, Jones, Gareth. Essentials of Strategic Management. Cengage Learning, 2011. Print Read More