Significance Of Strategic Management Issuesâ€Myassignmenthelp.Com

Question: Discuss About The Significance Of Strategic Management Issues? Answer: Introducation: The case study is focusing on the launch of Boeing 777X in the year of 2013 at Dubai Airshow. Emirates Airways has captured the leading position in the airline industries. The launch of this Boeing 777X is proven to be the largest deal that ever took place in the history of Emirates Airways. This agreement ensured that these planes will assemble at Dubai International Airport along with the wide bodied Emirates Planes (Klophaus, 2016). The passengers from Asia, Europe, Africa, America, and the Gulf will be able to travel to their respective destinations. Tim Clark, the President of Emirates Airline ensured that such agreement was much fruitful for the global economy as well as the business success. It is noted that after this massive success, Emirates Airways transformed into the third largest airline company in the world. It has the boarding capacity of largest amount of passengers (Roy, 2012). In fact, in the year of 2012 and 2013, twenty-three new routes were added due to which th e capacity growth increased up to 18.4%. The efficient delivery of new aircraft including the A380s is much remarkable for determining the future success (Bamber et al., 2013). However, the innovative and latest trends are taken into account as the major threats for the company. Especially, considering the maintenance of the consistency in business growth, such changing and innovative trends have the clear impact on industries (Ulrichsen, 2016). The major challenges were faced due to the deployment of the mentioned craft amongst the existing fleet. It is also identified that the investment of over $117 billion in a fleet expansion was considered as the shrewd strategic moved experienced ever by any of the airline industry (Alcacer Clayton, 2014). On the other aide, it was noticed that Emirates Airways tried to compete with the legacy carriers on the international routes by entering new markets. Therefore, the case study follows the process of using the fundamentals by Emirates Airways in order to participate efficiently in a competitive environment. The study will also concentrate on the business expansion process and underlying obstacles. The identificati on of the underlying issues will be helpful in understanding the probable solutions and initiatives to accomplish the business goals. Detailed Analysis of the identified issues The identified issues are considering the conflicts arose due to the business expansion initiatives. The company started developing the business strategies by deploying new craft and selecting new routes. However, the detailed analysis of products, competition, and other similar components will provide the insightful ideas about the business performance ensured by Emirates Airways (Emirates.com, 2016). In order to recognise the probable solutions against such issues, it is necessary to keep focus on the detailed analysis. The analysis of the macro-environment can be presented through the description of the political, economical, social, technological, legal, and demographic environment. The description of different factors is presented further: Ulrichsen (2015) defined that the political environment indicates the implementation of the government policies including the taxation process and future policies. In case of Emirates Airways, it is noted that the company has to face the strict and protected regulations. These regulations are merely formulated by the Dubai Government, which is the sole owner of the airline industry (Aviationeconomics.com, 2016). It is to be stated that the aviation industry in Middle East is generally dominated by Gulf Air, which is the regional carrier of the location. The political interference is much hazardous for the company during the formulation of relevant business models. The case study indicates that Emirates Airways participated in the competitive environment by waging the marketing campaigns (Emirates.com, 2016). It has the significant impacts on the economic structure, which was presented by the detailed report. It was reported that such expansion business strategy derived much profit to the company. The business model ensured by the company is indicating that Emirates Airways has undertaken several strategies to determine the business growth (Richard, 2016). At first, the company started planning about establishing the strategically placed hub at Dubai Airport. However, it was noticed that this strategy could not create much influence on business process. Heathrow in London, Charles de Gaulle of Paris, and Schiphol of Amsterdam are considered to be the major hub for flights formulated during the rules of colonial empires (Klophaus, 2016). This historical advantage was much threatening for such business initiatives. The company tried establishing the global hub-and-spoke system for capitalising the flows and accessing to the new destinations. In order to fulfil such needs, the company required the help from the government. The investment group was the major shareholders for undertaking such initiatives. Another major initiative undertaken by the company was the route planning for ensuring growth (Dresner et al., 2015). The competitive scenario is again proven to be the major obstacle for this initiative. PESTLE Analysis PESTLE analysis of Emirates Airways will provide the insightful ideas regarding the political, economical, social, technological, legal, and environmental factors. It is noted that the Emirates Airways has captured the leading position among the fastest growing airline industry in UAE. The description of these associated factors is presented further: Political factor: The political situation is much instable in UAE due to which the airline company has been facing the significant challenges. Due to the terrorism fear and wars, the business is much affected. The terrorism activities in different areas including US, UK, Qatar, and Lebanon have been frightening the tourists much significantly (Redpath, O'Connell Warnock-Smith, 2016). Therefore, the traffic of the passengers and travellers has reduced much prominently. The political instability is one of the major obstacles for the business development process in Middle East regions. The travellers from different regions are becoming much insecure to visit the place due to such terrifying activities. Economical: The modern airline industry is highly supported by the latest technologies for achieving the customer satisfaction level. In concentrating on such facilities, UAE has been concentrating on developing the airports with the help of such innovative technologies. It is thus predicted that in next 20 years, the profit amount will reach up to more than expected return amount. The globally considered alliance process is also much beneficial for the airline companies to grow in this competitive environment. The economic growth is thus much remarkable for the future growth. Social: The growing population in the Middle East Region is also one of the most considerable factors for developing the airline industry. The emergence of multiculturalism has been attracting the customers in a significant way. In fact, the growing number of expatriates is also fruitful for the business development purposes. However, the influence of the different diseases is also frightening the travellers, which is another major concern for Emirates Airways. Technological: The technological innovation has been creating both the positive and negative impacts on the Airline Industry. In case of Emirates Airways, it is noted that the technological advancements have transformed the telecommunication process, which is much beneficial for the airline company. The e-booking system has been saving the money and time of the customers (Naeem, 2014). However, it is noted that the associated staffs sometimes fail to manage such technologies due to which the flights sometimes get delayed. Hence, it is one of the negative points for the airline industry. Legal: The legal scenario of UAE has been affecting the airline business more specifically. It is noted that the government has imposed rules and regulations for improving the flight conditions and security purposes. Hence, the engineers need to recheck the parts of flights before the departure. It makes the flight delayed for some time that may create the negative impression on travellers minds. Moreover, the frequent interruption of the legal rules is hampering the business strategies for the development purposes. Environmental: The environment of the Middle East region has been developing in a significant manner. The emergence of the industrialised business and competitive scenario is providing the fruitful business opportunities to the airline companies. Moreover, the development of the tourist attractions has been gathering the traffic, which is also effective for the tourism and travels. Hence, it is noted that the environmental impact is much favourable for the business development of Emirates Airlines. VRIO Framework In order to recognise the competitive advantage of Emirates Airlines, the VRIO analysis would be much helpful. The description of the VRIO Framework is presented further: Value: It is noted that the Emirates Airlines has the remarkable human resource management with the personal good experiences. This airline company has been providing the remarkable information system to the staffs for improving their professional and personal skills without any expenses (Hannigan, Hamilton III Mudambi, 2015). The company has even set their strategic destination in Dubai, which is politically stable area. Rareness: The Company has selected Dubai as the strategic location, which has the scarce resource for providing the power line and the great demand for the services. It is even considered that the human capital is also one of the scarce resources that can be taken into account. The large contribution to the success is much commendable and it signifies the rareness of the strategic objectives. Imitability: The strategic positioning of the company is most effective steps that have been undertaken by Emirates Airways. Dubai is thus considered as the commercial capital of Middle East Region. Hence, the company has the remarkable resource allocation process for the development purposes. Organisation: It has been observed that the cooperation between the diversified departments of Emirates Airways is much cost cutting. This is even increasing the efficiency of the business functionalities. The adoption of the efficient leadership styles has been contributing the efficiency to the competitive advantages. Hence, the company has the significant growth in this resource allocation process. Ordered Analysis Emirates Airways has undertaken the proper operation strategy to consider growth of the business. It is noted that the operational process related to the flights or aeroplanes is much significant for the aviation industry. The company expanded the operational process by including three types of fleets, such as Airbus A330/A340s, Boeing 777s, and Airbus A380s. This restriction on the fleets allowed the company to optimise the deployment of pilots (Coleman, 2015). The launch of new double-decker A380s was considered as the significant steps for Emirates. The company has paid the attention towards the cost control process in order to facilitate the relevant business operational processes (Centreforaviation.com, 2016). By deploying new crafts and allocating the proper resources, the company started planning of Divisional VP of Routes. Concentrating on the initiated operational strategies, it is also noted that Emirates started selecting the new routes for generating more revenues. However, this initiative was proven to be weaker since it included higher risks. In order to reduce such potential risks, the company required investing heavily on the market and demand research (Emirates.com, 2016). The complete information regarding the market is helpful enough for implementing any particular business models. However, the company recognised that the focus on the product or service development will be the efficient technique for gathering supports from the travellers. Therefore, the company started enhancing the in-flight experiences. It included the greater proportion of seats that can be reserved for the premium classes (Logothetis Miyoshi, 2016). The increasing demands of the luxurious travel experience were also one of the major focuses of the business. Recommendations The identified issues are signifying that the establishment of the latest trends, innovativeness, and threats from the potential competitors may affect the business initiatives. Keeping focus on such issues, it can be inferred that the involvement of the potential investor is necessary for the company. The competitive scenario is the most threatening consequence that can create the significant impact on business growth. In order to compete in this challenging scenario, the company requires investing more on the innovative technologies. The allocation of the proper resource is essential in such case. However, the identification of the proper investors is also much necessary for determining the major shareholders of the business. The company has been focusing on improving the in-house flight experience. In order to accomplish such initiatives, the company requires investing more on the training purposes. If the associated employees and the cabin crew members are trained in an effective way, it would be easier to manage the latest technologies. The utilisation of such innovative process would be much fruitful for the company to participate in a competitive scenario. However, Dubai government needs to provide the proper help in such regards. Who, When, and How The associated business management of Emirates Airways needs to consult the Dubai Government since the government makes most decision regarding the aviation industry in Middle East region. The supports receive from the Dubai Government would be much helpful for the company to contact more shareholders. The involvement of the shareholders will be much fruitful for the investment purposes. The capital amount invested for the training purposes and collecting the latest technologies would be beneficial in improving the in-house flight experience. When the travellers will experience the world class and luxurious flight journey, it will spread the positive word of mouth. It automatically helps in establishing the reputed position of the company in a competitive business world. Issues in a Group It was noted that Emirates was much benefitted from the consistent leadership style. Two visionary leaders were associated for bringing success since the inception time. In the year of 2003, Sir Maurice Flanagan was selected as the president. After Sir Flanagan, Mr, Tim Clark appeared as the leader who started bringing more efficiency in work to manage growth. The issue was found when Mr. Clark retired from his position. It was found that there was no proper replacement for the successor position, which could contribute to the rapid growth of the company. However, in order to recover from such issues, it is the essential need for each of the employees to maintain their strategic role in performing the organisational functionalities. It is noted that the knowledge regarding the mission and vision of the company. During the crisis scenario with the leadership process, it is necessary for the employees to maintain the roles and responsibilities for accomplishing the business objectives. In such cases, the staff-mentoring is one of the major strategic implementation that is needed to be undertaken by the management. The work efficiency of the staffs would decide the leadership potentiality. In order to manage such risks, the management has been paying attention towards the investment parameter to bring more work efficiency. However, the involvement of the proper investors is also much necessary. When the management has been concentrating on managing the performance parameter of the employees, it is necessary to concentrate on the training process. The human resource management can take the responsibility on making the employees aware of their roles. Moreover, the capital amount is required to be invested in establishing the training session. The recognition of the proper training session would provide the employees the insightful ideas about the organisational objectives, missions, and relevant operational functionalities. Contingency Plan If the management fails to achieve the purpose of risk management plan, there should be a backup plan needs to be taken into consideration. It is essential for the management to concentrate on the engagement of more investors who can invest the sufficient capital amount. It is necessary to implement the plan according to the operational time schedule. The management even needs to pay the focus on proper motivational factors, such as incentive plans, reward and recognition, and training development. The concentration on such aspects would be much beneficial for reducing the risks and developing employees potentiality. Conclusion The launch of the Boeing 777s was the most beneficial movement undertaken by Emirates Airlines. The company could establish the business reputation by introducing new routes for the different destinations. However, it was noted that the emergence of new technologies and latest trends is creating impacts on the travellers minds. The threats from the potential competitors are affecting the business initiatives undertaken by Emirates Airways. In order to implement such latest technologies, it was essential to invest more on the business process. Moreover, the supports received from the Dubai Government are also much essential. However, concentrating on such issues, Emirates Airways requires searching for the efficient and reliable investors who will be the major shareholders of the business. The invested capital amount will be spent for the training purposes and improving the in-house flight experience. The travellers can experience the luxurious flight journey if Emirates Airways will be able to implement such fruitful initiatives. The recognition of the issues is also indicating the challenging situations faced by the company due to the strict regulations. However, the consultation with the government before implementing any business model would be fruitful for the future growth. References Alcacer, J. Clayton, J., (2014). Emirates Airline: Connecting the Unconnected. Harvard Business School, pp.1-34. 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