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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 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 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 & 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 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 Solution

The operational features could be redesigned to ensure that in the wake of unending competition the company would have secured its faithful clientele. It is with the great possibility that the airline would use traditional inherent structures to ward off competition. Being a short haul and low-cost carrier, the Southwest Airlines has exceptional customer experience (Inkpen 8). Capitalizing on this component would allow the airline to retain virtually all their loyal customers and thus fight off its competitors. Potential Disadvantages

For Southwest Airlines, growth opportunities have been approached with caution. Large markets with relatively intense completion from other carriers would result in air traffic delays, longer turnaround time at the docking points, and additional challenges to air services (Inkpen 10). Thus, due to its quest to handle an extremely competitive environment, Southwest would be faced with disadvantages in trying to source for new markets in America.

Potential Consequences

The projection for growth has been endless as observed by Southwest Airlines` former CEO Herb Kelleher. He admited that uncalculated growth and demand forced the company to make foolish decisions that end up in losses and lawsuits to the firm. This analysis points out that there is no need to rush assessment to capture a bigger market as a means of cushioning a company such as Southwest Airlines from the competition. The best way is to evaluate the business strategy such as short hauls and low fares and implement it accordingly. Criteria Utilized

Potential Advantages .The human resources department at the airline is fully equipped to handle passengers in a proper and efficient manner. Employee initiative is supported by the management, and this has seen the company reduce its operational costs. Pilots are known to save on fuel, and employees in the top management have been seen to relinquish their salaries as a means to portray an engaging and good personality in management styles (Inkpen 7). Criterion 1. Expanding the viewpoints for the employees and management to serve the company better improves service delivery and retains passengers. The involvement of former CEO Kelleher in unloading passenger bags and helping the flight crew serve drinks presented an invaluable opportunity (Inkpen 6). Visionary leadership is helpful in navigating competitive flying industry. Criterion 2. The airline could learn from the mistakes of Continental Lite (CALite) that lack of good customer relations would lead to the bankruptcy of a business entity. Continental Lite failed to respond to customer complaints that were publicly placed at over 40% higher than the industry average (Inkpen 9). Criterion 3. Finding and improving on operational capacity is an essential instrument for tackling the forces of competition. The buyout of AirTran was a wise business decision since it broadened the destination options for Southwest Airlines. However, this being the first merger the company considered, a lot of incorporation difficulties have been encountered such as incorporating their much-valued workplace culture of fun and friendliness (Inkpen 8). Analysis of Criteria

Based on the evaluation of these criteria, the solution of friendly customer relation is the best approach because its presence helped affirm that good customer relations can help to weather off stiff competition. Implementation

The expansion for the Southwest Airlines is impending due to the increase in demand for their flight services. Current CEO, Gary Kelly, espoused that the airline’s fortunes laid more beyond American borders (Inkpen 10). The management needs to focus on a penetration strategy for the airline’s need to look beyond its traditional American market to ward off competition and to tap into lucrative markets. Contingency Plan

Southwest Airlines needs to look into rebranding alike AirTran to become increasingly profitable after rethinking and adjusting their business strategies (Inkpen 10). After rebranding they should consider flying outside the American airspace to even the stiff competition. Conclusion

The existence of Southwest Airlines for over 40 years has not failed to post a substantial profit. But with increasing competition from short haul airlines, this phenomena might cut back their fortunes. Competition has been known to push firms into a desperate reaction. Growth opportunities become welcomed but uncertain. Thus, the airline needs to rethink its strategy by replicating it beyond America to gain more revenue.

Works Cited

Alcacer Juan & Clayton John. Emirates Airline : Connecting The Unconnected. Harvard

Business School. January 2014.

Inkpen Andrew. Southwest Airlines. You Are Now Free To Move About The Country.

Thunderbird. School Of Global Management. 2013.