Strategic Management Practices of Emirates Airlines
1.1 Background of the Company
In the scopes of this study, it is important to pay attention to the background of Emirates Airlines and to the core details concerning the specific features of the company’s’ activity. Emirates Airlines is the airline, located at Dubai International Airport in Dubai, the United Arab Emirates. More than 2.500 flights are operated by this company per week, and consequently, it is considered the largest airline in the Middle East. The world’s four longest non-stop commercial flights are operated by the company: from Dubai to San Francisco, Houston, Dallas, and Los Angeles.
The mixed fleet of Boeing wide-body aircrafts and Airbuses is operated by Emirates Airlines. In addition, Emirates Airlines is one of only nine airlines worldwide, providing the all-wide-body aircraft fleet. The centerpiece of Emirates is Boeing 777
1.2 Industry in Which the Company Competes
It is important to pay additional attention to the fact that currently Emirates Airlines is considered to be the leader of the airline services providing in the market of the UAE, and it occupies the valuable position on the world market of airlines. It is possible to outline American Airlines, United Airlines, Delta Air Lines, Lufthansa Group, Southwest Airlines, China Southern Airlines, Ryanair, Air France-KLM, China Eastern Airlines, and US Airways among its competitors.
1.3 Market Position of the Ccompany
It is important to rely to the fact that Emirates Airlines is the Emirates Group subsidiary. There are more than 50,000 employees; the owner of the company is the Dubai government, and the Dubai Investment Corporation is its direct supervisor. The activities related to the cargo are carried out by the Emirates Group’s Emirates SkyCargo division.
In the terms of passengers’ quantity, the revenue rate and the passenger kilometers, airline is considered one of the top 10 carriers worldwide (Emirates Airlines Official Web site 1)
2 MISSION STATEMENT OF THE COMPANY
2.1 Mission of the Company
“We exist to deliver the world’s best in-flight experience.”
2.2 Vision of the Company
For making the deep analysis of Emirates Airlines, it is important to outline the informative overview of organization, including its industry, location, size, and age. The organizational goals, as well as its mission and strategy would be also considered. The deep analysis of corporative culture would be carried out. Matching of the main parameters would be done in order to make the conclusion about the compliance of the existing organizational mission and strategy with the requirements of organizational culture.
In Emirates Airlines, organizational culture is a constellation of organizational values, which are introduced in the company’s organizational mission, structure, strategy, and personnel policy.
Every employee of Emirates Airlines feels the existence of corporate culture and its impact. It influences the ability to work, the wish to work, and the quality of work. The key success factor of Emirates Airlines is the symbiosis of the working strategy and organizational culture. It helps the organization to be worthy of respect and to be recognized as reliable company..
Organizational culture (OC) plays a significant role in creating the image of Emirates Airlines and its reputation that define its place in the market. OC in the company is represented in different issues – beginning with the employees’ uniform or style or dressing, furniture in the office, and the way of communication with the clients, colleagues, and business partners.
There are the following types of the organizational culture: baseball team culture; fortress culture; club culture, and academy culture. In Emirates Airlines, there is a combination of academy culture and baseball team culture– all employees are high qualified and provided with an opportunity to develop their professional skills in the organization. Employees are willing to work for this organization and to build their careers.
2.3 Values of the Company
Emirates Airlines’ organizational culture can be described and evaluated in the following way: including the main principles of the Company work, its employee’s behavior and their professional skills, as well as Company’s working methods and its values. There are six intertwined elements of the Emirates Airlines’ work :
Making the review and supporting the reform process in organizations in order to make functional and service analysis;
Organizing of institutional arrangements for the innovation process integrated research. It includes the designing of new arrangements, using integration workshops; finding out alternative measures in order to have additional options and the business facilities.
Management system changing research – for the organizational system development. It includes carrying out several researches inside of the company- team working, subordination; corporative climate inside of the working groups, compliance with business ethics norms in all aspects of the Company activity (manner of communication with the client, between personnel, manner of dressing in the office, exterior view of the office, etc). Management system changing facilitates the planning process, as well as interaction between management of all levels. Also, it coordinates the training programs and coaching for the employees, develops the staff competence, and generally, it improves the corporative climate and corporative culture in the whole company.
Developing different approaches and methods for the integrated research and company improvement.
Staff competence development for reorganization of the current organizational structure. It is carried out by means of: coaching, training, learning courses, personal development, facilitating negotiations between different levels of management in order to generate new methods, systems and approaches to the system changes.
Management knowledge improvement for the innovations implementation into the current activities of the company (Revans 15).
Such a conclusion has been mainly caused by the fact that the employees have a desire of working for the company, and they have got wide spectrum of opportunities for professional development and growth; the requirements for employees are high and they need to be professionals in their field.
At the same time, they have got high prized skills and possibilities to find alike career opportunities in other organizations. It is not possible to consider the Emirates Airlines OC to the baseball team culture only, even while taking in account that such a culture is essential for the high risk organizations, including those, working with innovative technologies.
The positive culture of Emirates Airlines is the best motivator for its personnel for the fruitful work and partnership with the clients.
The positive attitude of the Emirates Airlines management towards employees is directed to the attraction of new forces and highly qualified experts to work for the Company. Understanding of cultural aspects and taking into consideration that marketing needs in different countries are variegated and that multifarious tools are needed to achieve the marketing goals, the local employees are hired in all countries.
The human resource centre (HRC) takes in response that work within the multinational team requires additional knowledge of ethnic psychology, and the HRC constantly upgrades professional skills of its employees.
The top management of Emirates Airlines understands the necessity of the positive organizational culture development and support, because when employees are dissatisfied with the corporative climate or do not share organizational goals, they would be less inclined to the reaching of these goals and the productivity of their work would drop down.
The evaluation of the organizational culture is considered to be a powerful instrument, which gives an opportunity to understand specific demographic separation of the team. In Emirates Airlines, there are following values in the attitude towards employees:
An employee is considered as an asset, and special care is provided by the Company;
Personal characteristics, values and needs of every employee are respected and supported by the Emirates Airlines HRC;
Emirates Airlines top management understands the reality of business. That is why its activity is up-to-date with the current market situation – every employee is protected from the lack of work, and his /her needs of professional activity are supported. It means the Company provides an opportunity to earn good money for its employees;
Constant optimization of working process and improvement of working conditions. Emirates Airlines invests considerable amount of money into new equipment and software purchasing, which allows to execute all duties in the shortest time period with high quality;
The Emirates Airlines HRC constantly motivates its employees with some bonuses, new job opportunities, and social care programs (Knoster 55).
That is why the organizational culture in Emirates Airlines is supportive of its organizational goals because human factor, which is the key success factor in the Company, is respected, valued, and supported on the highest level.
Being an employee to Emirates Airlines means: having prestige work, promising career opportunities, and working in a positive, corporative climate with the friendly team.
3 EXTERNAL ANALYSIS OF THE COMPANY
3.1 Porter analysis of Emirates Airlines
The competitive analysis of the airline industry may be represented in the following manner. Competitive rivalry within an industry is influences by the following forces: bargaining power of suppliers; bargaining power of customers; threat of new entrants; threat of substitute products.
It is important to put an emphasis on the fact that the rivalry within the airline industry existence implies the fact that the market of airlines has got several participants’, offering the same transportation services (American Airlines, United Airlines, Delta Air Lines, Lufthansa Group, Southwest Airlines, China Southern Airlines, Ryanair, Air France-KLM, China Eastern Airlines, and US Airways). The aggressive competition between the above listed participants of the market takes its place by offering the cut-fares, different services and flyer membership privileges.
While referring to the treat of new entrants, it is important to rely to the fact that the huge setup thus the large investment is required by the airline industry business. Currently, the new quantity of banks has occurred and consequently, the additional opportunities for the new entrants of the market have been created: they are offered with the loans on less interest to the business sectors.
The next issue to be discussed in the scopes of this analysis is the threat of substitute products. It is obvious that the airlines is the fastest mean of traveling but at the same time, there are other different options of travelling available.
While referring to the bargaining power of suppliers, it is important to rely to the fact that the quantity of suppliers in the airline industry is limited due to the fact that Airbus and Boeing manufacturers are integrated into the concern.
The last issue to be outlines in the scopes of this analysis, is the bargaining power of customers. There are some options of the Emirates airlines bargaining by the customers because the competition in the industry is high.
3.2. External Threats to the Company: Dispatch System Role for Emirates Airlines
First of all, in the scopes of this chapter, it is important to rely on the role of the dispatch system of Emirates Airlines. It is possible to state a fact that the core purpose of the flight dispatch system and its application is not only flight operations support but also the provision of the company with the current information about economic and logistical aspects of flight scheduling. The automatized computer systems use the software, which gives an opportunity to generate effective flight schedules, based on calculation of several logistical variables and current financial and economical data.
The dispatch of Emirates Airlines is the System Operations Control Centers, where the flights of Emirates Airlines are world-wide monitored and controlled. It is done with the using of flight planning, satellite communication systems, and tracking computers. That allows to reach the highest accuracy of the flights and to plan a motion path from the departure to the destination point in the most optimal and accurate way. The dispatch is also called the ‘Mission control’ of the airlines and is compared with its nervous system.
It is important to put an emphasis on the fact that the decisions and coordination are made both in local and global scope, and in addition, the dispatch is not the ‘traffic controller’, but it is the ‘traffic cop’, because the mission of controlling belongs to the Aviation Authority.
The requirements to the Airline Dispatchers are high, and they are to hold a valid Aviation Authority Aircraft Dispatcher certificate and to have equally knowledge as the Captain in aviation. The collaboration of two departments,– the Dispatch Centre and the Aviation Authority Administration, provides and guarantees the highest level of protection for the airlines clients and makes the flight to be maximally safe.
The dispatchers are given the following permissions: to cross all organizational lines, taking in consideration the thunderstorms probability, visibility level, runway conditions, icing, checking the aircraft mechanical status, including air traffic control delays, navaid status, etc.
It is hard to reappraise the role of the Dispatch Centers and their contribution to the safety of clients or the cargo. It is evident that, without the introduction of such Centers activities into everyday work of Emirates Airlines, it is not possible to ensure the safety and security of the flights.
The availability of such a system completes the work of the Aviation Authority and provides the double controlling system and double protection of lives and health of the customers.
While taking in account the fact that there is a large amount of the operations required to provide the successful air transport services, there is a need of its regulation, administration, and management. Also, a constant optimization of the process is needed in order to increase the efficiency, to improve the set of provided services, and to look for new business opportunities and, finally, to create, develop, support a positive image of the company. The positive image is needed for saving the existing clients and attracting the new target audience (Wilson 45)
Nowadays, in the world of digital technologies, the operational systems of administration are based on the newly-developed technologies and are operated with the help of computer devices in order to minimize the risk. Also, the digital technologies allow simplifying access to the services provided by Emirates Airlines. The reservation systems are optimized and all aspects of the airline’s operations are supported.
The airline administration of Emirates Airlines is provided in the Airline Administration Centres (AACs), and their responsibilities comprise financial and administrative services provision. They have got wide spectrum of services, including resource planning and control, revenue, management and pricing, marketing and sales solutions, administration and finance, passenger handling, flight planning and dispatch, controller pilot data link communication –technology aircraft communications addressing and reporting system, air cargo handling, and other related operations.
The core importance of the Computer Applications using is simplifying the data processing and providing access to the common databases in the different branches of the company.
There are several goals, pursued by providing of the system of the Emirates Airlines computer control. The most important of them are the following: simplifying the procedure of client service; creating the common database for different air transport services providers, increasing the safety level; decreasing the employees’ number, and reducing the costs for services.
The potential application for these computer programs increases every day, and now, everyone is provided with the information about every airline and about the cost of their services, schedules, etc. Also, clients are provided with an opportunity to book and purchase the tickets via the internet, to see all available variants, and to choose the only best suitable services for each particular case.
While taking in account the rapid development of the computer techniques and its importance in all areas of the human activities, it is logically to assume that their role increases every day, and in some years it will be hard to imagine how it was possible to carry out the set of issues without the newest development of humanity-computer technologies.
It is considered that the last decade has changed the airline world revolutionary. All the processes related with this field are currently integrated with the computer systems, beginning with the development of the planes models and calculating all its parameters, their manufacturing, and including the process of exploitation and maintenance.
All the deviations in systems can be monitored with the computer, and several of them can be even corrected. It is impotent to put an emphasis on the fast and rapid development of new technologies and on reducing their costs and sizes while updating them and improving new ones that need fewer materials and save more energy.
The main problem of today’s airlines is the safety, because even having perfectly-developed systems of monitoring, controlling and supporting an aircraft during the flight, there are still numerous plane crashes. That is why the main task of today’s engineering minds and skills is the development of automotive systems of human protecting in the extraordinary situations. These systems are to detect the possibility of danger and to prevent it (Bokaie 53).
It is obvious that the development of such a program will initiate the development of social responsible programs, and in the case, if Emirates Airlines were the first to implement such a program, it would get extra profits and attract new clients.
Even if it is impossible to get the faithful representation of the future science and technical development, there are some directions (weak points) that are to be improved and corrected. The question of the safety is to be on the 1st place for every company, providing this type of service – to protect its clients and employees.