Surname 2
Name:
Instructor:
Course:
Date:
Writing an Analysis to a Business Problem- Emirate Airlines
Recommendation
The Emirate Airlines have grown to be an industry pace setter over the years. Under a very ambitious management and an insatiable customer base, the airline has only one option to expand and cater for this demand. With a global network to virtually all mega cities in Europe, Africa, Australis, Asia and America, the global presence requires to be matched with equally robust business capacity. The Emirate Airlines has found the need to invest over $ 17 billion in fleet expansion in a period of about three years (Alcacer & Clayton 1). The expansionist drive by the airlines management is seen as a reaction to cover further routes as opposed to point - to - point routes. This would mean restricting clientele and ultimately limiting the ambitious growth the management had for the company.
Main Problem
The sustained and motivated goal of being a global carrier was increasingly becoming a reality as is evidenced in 2013. The company was able to seal the largest procurement deal of airbuses that could easily fly to further destinations such as New York and Sydney. Additionally, it was able to cover over 138 destinations globally (Alcacer & Clayton 2). This presents the main problem to the airline. What is the best way for the company to serve demand and maintain profitability in the wake of an increasing expansion and resulting demand?
The secondary problem would include upholding its successful business model that has been implemented under the able leadership and management of its CEO Tim Clark, who is nearing his retirement (Alcacer & Clayton 15). Finding a visionary leader to steer the company and its considerable workforce towards the realization of the company’s goals is no task for a faint heart.
Proposed
Solution
The business model adopted at its inception years in 1986 has proved to hold the mantle for the company. In the end, the corporation made profit regardless of international recession or completion. The unique business model offers Emirates Airlines as a high-end carrier with special amenities for its passengers. Refusal to compromise on standards of the company model is an essential element to remedy the crisis of achieving the demand. The company should take note that its faithful clientele has agreed to pay extra because of the exceptional services, which the Emirates airlines have been known to offer.
Potential Disadvantages
The Emirates airlines have one of the largest fleets in the world. This massive number has increasingly choked the facilities at the Dubai Airport. Additionally, maintaining this fleet will be expensive in future. It will face the same problem as legacy carriers with an older fleet that is costly to maintain (Alcacer & Clayton 13). Customers would be faced with impending challenges, which the company is already facing but at a different scale.
Potential Consequences
An increase in demand will ...
1. Surname 2
Name:
Instructor:
Course:
Date:
Writing an Analysis to a Business Problem- Emirate Airlines
Recommendation
The Emirate Airlines have grown to be an industry pace setter
over the years. Under a very ambitious management and an
insatiable customer base, the airline has only one option to
expand and cater for this demand. With a global network to
virtually all mega cities in Europe, Africa, Australis, Asia and
America, the global presence requires to be matched with
equally robust business capacity. The Emirate Airlines has
found the need to invest over $ 17 billion in fleet expansion in a
period of about three years (Alcacer & Clayton 1). The
expansionist drive by the airlines management is seen as a
reaction to cover further routes as opposed to point - to - point
routes. This would mean restricting clientele and ultimately
limiting the ambitious growth the management had for the
company.
Main Problem
The sustained and motivated goal of being a global carrier was
increasingly becoming a reality as is evidenced in 2013. The
company was able to seal the largest procurement deal of
airbuses that could easily fly to further destinations such as
New York and Sydney. Additionally, it was able to cover over
138 destinations globally (Alcacer & Clayton 2). This presents
the main problem to the airline. What is the best way for the
company to serve demand and maintain profitability in the wake
2. of an increasing expansion and resulting demand?
The secondary problem would include upholding its successful
business model that has been implemented under the able
leadership and management of its CEO Tim Clark, who is
nearing his retirement (Alcacer & Clayton 15). Finding a
visionary leader to steer the company and its considerable
workforce towards the realization of the company’s goals is no
task for a faint heart.
Proposed
Solution
The business model adopted at its inception years in 1986 has
proved to hold the mantle for the company. In the end, the
corporation made profit regardless of international recession or
completion. The unique business model offers Emirates Airlines
as a high-end carrier with special amenities for its passengers.
Refusal to compromise on standards of the company model is an
essential element to remedy the crisis of achieving the demand.
The company should take note that its faithful clientele has
agreed to pay extra because of the exceptional services, which
the Emirates airlines have been known to offer.
Potential Disadvantages
The Emirates airlines have one of the largest fleets in the world.
This massive number has increasingly choked the facilities at
the Dubai Airport. Additionally, maintaining this fleet will be
3. expensive in future. It will face the same problem as legacy
carriers with an older fleet that is costly to maintain (Alcacer &
Clayton 13). Customers would be faced with impending
challenges, which the company is already facing but at a
different scale.
Potential Consequences
An increase in demand will force the airline to rethink its
strategy of being a stand-alone airline. Air transport is a flaky
affair. Legacy carriers have either gone under or simply gone
into mergers, however, for the different reason of going
bankrupt (Alcacer & Clayton 4). Emirate airline should consider
joining an alliance but under different terms to ensure that they
are capable to handle all demands.
Criteria Utilized
Potential Advantages.The airline’s fleet is a composition of a
close working relationship between airbus manufactures and the
company spanning over ten years. The company has been able to
customize their carriers dictated by the consumer demands and
wishes (Alcacer & Clayton 7). Such a strategy is indeed very
helpful in case of maintaining a service that has proved to have
a loyal clientele. The fleet would reap maximum benefits from
operations at an enlarged airport hub.
Criterion 1. This fundamental aim for catering for demand
would be realized through the increase in the network for the
carrier. The resulting demand poses a stain on the airports
4. facilities. To overcome this challenge, the company has
undertaken massive ground upgrade projects in both the Dubai
Airport hub and the upcoming Al Maktoum Airport (Alcacer &
Clayton 15). This will effectively offer the best solution to
overcoming the demand through retaining their legacy as a
luxury and global brand.
Criterion 2. Striking a balance in the operations is faced with
challenges such as competition from legacy carriers in the
region such as Singapore Airlines. The new leadership after
CEO Clark will require to be groomed from the workforce. The
airline has a significant workforce, in which the management
team is horizontal in nature (Alcacer & Clayton 12). This shows
that it is possible for a similar manager to be plucked from the
existing team.
Analysis of Criteria
Based on these criteria, expanding the airport facilities is the
best approach. This is because it will open the facility to bigger
airbuses and will be able to serve even more passengers in
record time.
Implementation
The fleet is indeed a symbol of pride for the company, but the
increase in demand has brought strain in the runway facilities at
the airport hub. The customized aircraft has stretched the
operational facilities, and there is an alarming need to extend
runways and build bigger docks for the larger aircraft (Alcacer
5. & Clayton 8).
Contingency Plan
The possible solution to expanding the airline’s facilities would
be to enter into partnerships. Some partnerships are mutually
beneficial such as with JetBlue and Qantas (Alcacer & Clayton
17). This relationship would serve as a reaction to competition
and demand. Seemingly, more partnerships will be sought for
point-to-point flights.
Conclusion
The core business of the airline is to ensure satisfaction of
customers by flying them to their destination of choice around
the world covered by the Emirates network. The new leader will
have to understand the dynamics of the global carrier and the
political considerations attached such as competition with
national carriers. Innovative strategies to ensure retainment of
traditional markets need to be implemented. This will
effectively have a grasp on market demands.
Writing an Analysis to a Business Problem - Southwest Airlines
Recommendation
The legacy maintained by Southwest Airlines is a business
success that has been difficult for many other airlines to
replicate. This was evident in the recession of 2008 and the
terrorist attacks of September 11, when airlines repeatedly
6. failed to post profits with an exception of Southwest Airlines
(Inkpen 3). Countering the fierce competition in the flight
industry requires an innovative but a basic approach. The
Southwest Airlines have been awarded various accolades to
signify their keenness at offering passengers the best and
memorable flying experience (Inkpen 8). The company can
exploit this good rapport with the passengers through public
relations and advertising to show their services are better than
those of their competitors. Capitalizing on the highly trained
“People Department”, the airline can successfully weather the
onslaught brought in by their competitors.
Main Problem
The company has recorded improved performance in an industry
where many players have been faced with operational
difficulties (Inkpen 2). Fuel costs, restrictive labor union
agreements, and high cost of older flight maintenance are all
difficulties to which all players in the aerospace industry are
faced with (Inkpen 2).Fierce competition in the aeronautical
industry can be singled out to be the most pressing problem for
the southwestern airlines. Southwest Airlines business strategy
met with rivalry where other bigger airlines tried to infringe on
the market niche covered by the airline.
Proposed