Strategic Management of Air Malta

This report analyzes the strategic management of Air Malta, examining its value chain, PESTLE factors, strengths and weaknesses, and opportunities and threats. It also explores the company's current strategic position using Miles and Snow typologies and provides recommendations for future strategic direction.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
Value Chain Analysis of Air Malta.............................................................................................1
Pestle analysis of Air Malta........................................................................................................3
SWOT analysis on Air Malta......................................................................................................4
Current strategic position for deriving business level framework..............................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Strategies define as basic and major consideration of a business which facilitate them to
grow and expand their operations in better manner (Ackermann and Eden ,2011). Strategies
required to manage by managers of a company so that organisation could become able to gain
competitive advantage in frame. This project is based on Air Malta whom are operate in Airline
industry and basically operations concentrate at Europe, North Africa and Middle East. This
project will used to define about the current strategic position effectiveness of a company so that
they could derive and determine better and appropriate operations. For deriving such context,
they will going to organise value chain analysis, PESTEL analysis, SWOT analysis and Miles
and Snow typologies which used to describe about the various business level strategies. Out of
them, management need to adopt the suitable one for gaining and deriving effective outcome.
Main Body
Value Chain Analysis of Air Malta
Value chain analysis is a process through which business suppose to determine the inner
activities of a company (Barney and Hesterly ,2010). It enable in deriving such aspects which
support in deriving internal abilities of a company and such aspect as well which need to
improve so that competitive advantage could be gain. Value chain analysis represent such
activities where management need to engage properly so that transformation of input into output
could be done. The value chain analysis for Air Malta define as follow which enable them in
crafting better and supportive strategies:
 Inbound logistic: This refer to as such process under which goods coming into the
business. Although, employees are a core part of business where HR manager have to
provide them training. This could be done on the basis of utilising technology where
leaders could provide training through internet. This will reduce the cost and further
support them to gain competitive edge where each and every individual work properly
and align effectively as well.
 Operations: On the basis of defining work, operations need to take place in better
manner. Here Air Malta need to done their working properly so that they could satisfy
their customers. This will enable them in gain competitive advantage by making their
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operations proper. This will assist them in generating more and more profit so that better
assessment could be done.
 Outbound logistic: This refer when operations or goods got manufacture and deliver to
outside the location of business. HR management of Air Malta need to facilitate effective
and better control on each and every activity. Although, business also have to integrate
their system so that every place could render better information to other locations.
Although, this will enable Air Malta to improve their services which further assist in
providing competitive edge and advantage as well.
 Marketing & Sales:HR individual need to recruit such personnel whom have effective
knowledge of marketing and Sales. Although, such individual could better know about
using internet technology and promoting their products. This will support them in
enhancing sales which further facilitate in providing better services to Air Malta and gain
competitive advantage properly.
 Services: The last stage of value chain analysis is for services which need to be high
standard in frame so that more and more customers could be attracted. This will enable
them in gain competitive edge through made customers satisfied in tenure. Air Malta
have to determine the deviations properly and required to modify their strategies with
time so that effective working could be done.
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Pestle analysis of Air Malta
Air Malta plc is the flag carrier airline of Malta who headquarters in Luqa and its hub at Malta
International airport. This company operated its business operations in the year 1974. the main
objective of company is to improve the economic position and make favourable impact at
international level (Hair and et. al. ,2012). This will open a gate for country like Malta to identify
the place of tourist destination that attracts tourism and also creating the culture and economic
place rather than the place of wars. Through the establishment of effective and reliable air links
to or from various European cities Air Malta was able to support both economic and cultural
development of islands. The main mission of company is to deliver 100% on the Maltese
difference we stand for and believe in. In order to strengthen their position in external market
they carry out the PESTLE analysis which described below:-
Political factors:-
there are different political factors and
elements that affect working culture of Air
Malta. Brexit rules and regulation, EU
emission, single aviation market given by
ASEAN in which policy will replace existing
unilateral, bilateral and multilateral air service
agreement among different states that are
inconsistent for various air companies. Apart
from it there are certain restriction on routes of
UK , US after Brexit. But there are some
political benefits that given to Air Malta for
future growth.
Economical factors:-
Certain economical factors like inflation,
deflation, change in foreign currency affect the
mission of company. Air Malta is affected by
fuel prices and fluctuation in oil exchange but
due to growth of tourism in Malta because of
higher GDP I.e. 26.7% and raised of income
level by 41% increase the profitability of Air
Malta because people spend money to travel
Malta destination.
Social factors:-
Over the years different changes are coming
environment in the form of technology and
innovative methods because of which demand,
choices and taste of costumer modify and they
choose such products and service which
Technological factors:-
In dynamic external environment various
advancement has been made in the form of
advance technology and digitalisation. Air
Malta in order to maintain their sustainability
for longer period need to include efficient
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provide best output to them. Therefore it is
important for Air Malta to stabilise their cost
and also people in society coming from
different mentality so given special facility to
business class passenger so they get effective
communication facilities.
aircraft, utilise the resource in effective manner
that reduce the cost. Apart from it installed
digitalise mobile app in aircraft and for the
convenience of costumer provide online
facility for ticket booking.
Legal factors:-
Air Malta has to compile with all laws and
regulation related to airline industry. Apart
from it company has to adhere with the
compliances of UNWTO, global code of
conduct, EU regulations and legal legislation
related to employee protection.
Environmental factors:-
Air Malta must installed such gadgets and
machine parts that help in reducing carbon
footprints and also compile with the regulation
related to noise that are allowed to emit from
aircraft.
SWOT analysis on Air Malta
Swot analysis give the review regarding company strength, weaknesses, opportunities
and threads which is the core requirement for every organisation (Hodgkinson and
Healey ,2011). Therefore Malta airlines has to analyse each and every factors and make
decisions on the basis of situations which helpful in gaining competitive advantages over rivalry
and earned good brand image at global level.
Strengths:-
 Air Malta collaborate with flat carrier
which is good transportation company
maintain all the rights and privileges
enforced by government for
international operations.
 It provided major services to European
cities and also promote major business
Weaknesses:-
 Product and services used by Air Malta
have declining product life cycle which
leads to instability in their working
environment.
 Sometime because of non fulfilment of
needs and desire of pilot and other staff
they are going to strikes for 10 to 15
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class services in respect of their
products and services.
 This airline is 98% owned by
government which safe and secure from
tourist point of view. In order to create awareness among
customers regarding their services they
also sponsor MICE and other events
that enhance market share and growth.
days which leads to heavy losses to
company.
 Airlines also have high spoilage rate as
compare to other industries I.e. once
the flight leaves seat were vacant and
become unproductive for company.
 Due to large geographical areas there is
always a problems of
miscommunication between passenger
and company.
Opportunities
 Air Malta also get the government
assistance in terms of legal matter and
in financial manner because it help in
enhancing the tourism growth of Malta
islands.
 They also have an opportunities to
select the channel routes and
geographical region according to visitor
backgrounds.
 Those tourist who are planning to visit
Malta easily get the visa so they booked
tickets from Air Malta only.
 Company in order to accomplish their
long term objectives need to adopt
those strategies and tactics which
enforced by Emirates and Ryanair. Malta is small island where the airline
hire the staff at cheaper rate because
people get employment opportunities in
this field.
Threats
 Growth of global economy is unstable
that affects optional travel as well as
business travel.
 Due to continuous increase in terrorist
attack or plague anywhere will affect
the growth of Air Malta.
 Malta air travel services is the complex
procedure of obtaining an air operators
certificate which qualify them to be
airlines become riskier for business.
 Heavy government interventions and
legal provisions become hurdles for
higher growth and profitability of
business.
 Prices of fuel become higher day by
day due to less supply which become
difficult for Air Malta to afford it for
longer period.
 In airline industry there are different
competitors like Emirates, Alitalia,
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Ryanair and Australian airlines which
comprises of experienced and
professional pilot along with strong
market position that become hurdle for
the growth of Air Malta.
Current strategic position for deriving business level framework
For gaining competitive position at keen define market world, management have to
follow and derive a better framework which assist them in crafting business level strategies. For
this relations, Air Malta suppose to have to adopt the Miles and Snow typologies (Keupp ,
Palmié and Gassmann ,2012). They will going to bring out better and effective working by
applying such practices in effective manner. The four aspects for business level strategies are
define as follow: Prospector:This level strategy concentrate for the growth and deriving better
opportunities at market world. Along with this, they also used to focus on innovation so
that market growth could become possible. Air Malta could go with this aspect where
they could start their flights in market world as well so that they could expand operations
in better and easy manner. Defender: This business level strategies basically for such companies whom do not want
to grow themselves and used to operate in existing market world. They believe in stable
growth and practices so that effective outcome could be drawn. Air Malta want to
develop and grow themselves. As per this, they might not grow themselves and used to
operate in existing market world. Analyser: This kind of strategy enable and support management to maintain their
innovation at market world as well as used to serve existing market customers. Such
analyser support them to grow through serving each and every customer properly.
 Reactor: This strategy is basically for such companies whom used to respond to some
particular situation and not to each and every one. The chances of drift for such firms are
more because they do not have clear and effective strategy. Air Malta need to analyse the
aspects properly so that they could react on changes arise at environment (Molina-Azorin
,2012).
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CONCLUSION
It get concluded from the project that business have to frame and craft better and suitable
strategies for their own so that competitive edge could be estimated. Strategies required to
manage and determine in better and suitable manner so that appropriate and effective outcomes
could be estimated. For this preposition, management need to understand about the macro
environment of a firm with internal abilities so that they could done and perform their activities
properly. It also define that business level strategies are a core part of a firm which enables in
gaining and supporting suitable and signified outcome. Thus, for managing profit and operations
in better and determined manner, current strategic position required to assess on which further
modifications required to take place for maximising efficiency and effectiveness in operations.
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REFERENCES
Books and Journals
Ackermann, F. and Eden, C., 2011. Strategic management of stakeholders: Theory and practice.
Long range planning. 44(3). pp.179-196.
Barney, J .B. and Hesterly, W. S., 2010. Strategic management and competitive advantage:
Concepts. Englewood Cliffs, NJ: Prentice hall.
Hair, J.F. and et. al. ,2012. The use of partial least squares structural equation modeling in
strategic management research: a review of past practices and recommendations for
future applications. Long range planning. 45(5-6). pp.320-340.
Hodgkinson, G. P. and Healey, M .P., 2011. Psychological foundations of dynamic capabilities:
reflexion and reflection in strategic management. Strategic Management Journal.
32(13). pp.1500-1516.
Keupp, M. M., Palmié, M. and Gassmann, O., 2012. The strategic management of innovation: A
systematic review and paths for future research. International Journal of Management
Reviews. 14(4). pp.367-390.
Molina-Azorin, J .F., 2012. Mixed methods research in strategic management: Impact and
applications. Organizational Research Methods. 5(1). pp.33-56.
Noland, J. and Phillips, R., 2010. Stakeholder engagement, discourse ethics and strategic
management. International Journal of Management Reviews. 12(1). pp.39-49.
Poister, T. H., 2010. The future of strategic planning in the public sector: Linking strategic
management and performance. Public Administration Review. 70(s1).
Priem, R .L., Li, S. and Carr, J. C., 2012. Insights and new directions from demand-side
approaches to technology innovation, entrepreneurship, and strategic management
research. Journal of management. 38(1). pp.346-374.
Travis, W .D. and Rekhtman, N., 2011, February. Pathological diagnosis and classification of
lung cancer in small biopsies and cytology: strategic management of tissue for
molecular testing. In Seminars in respiratory and critical care medicine (Vol. 32, No.
01, pp. 022-031). © Thieme Medical Publishers.
Online:-
Value chain analysis 2018 [Online]. Available through
<https://www.strategicmanagementinsight.com/tools/value-chain-analysis.html>.
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