Business Strategy: Macro Environment, Internal Capabilities, Competitive Forces

Business Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1:Elaboration of macro environment and its impact or influence in organisation.......................3
2. Internal environment and capabilities of organization. ...........................................................5
3. Porter five model in evaluating the competitive forces...........................................................8
4. Strategies management plan..................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business Strategy is a vital tool for an organisation who wants to grow its business in a
strategic manner. Business strategy is basically a clear set of plans and actions that defines how
an organisation survive in the market and compete with others with its product or services. The
study of this report is focus on Fly Emirates company, which is one of the largest airline of the
UAE. The mission of Emirates is to provide high quality services to all its passengers and to
achieve customer satisfaction with innovation and highest quality standard. The report further
elaborate about the PESTEL or stakeholder analysis to examine the macro environment of the
company. Moreover, the report discuss about the internal environment with the help of SWOT,
along with the Porter Five Forces to examine the marketing strategies. Lastly, various theories or
models, concepts are explain that devise strategic planning for an organisation.
MAIN BODY
1:Elaboration of macro environment and its impact or influence in organisation.
PESTEL Analysis of Emirates examines its business strategies and elaborate its various factor
like political, legal, social or environmental. Lets discuss more in detail about PESTEL analysis
of Emirates:
Political
Emirates started it journey when Dubai started developing and now Emirates spreads its
operations all over the world. As airline industry is more prone to the political factors, hence
Emirates should operates in that country where political environment is stable. Emirates is
emerging in various countries and governments always try to keep the passenger's safety its
supreme priority. Any political change or security issues in these countries may halt the demand
of the Emirates. There are many international airlines restricted in some countries and also travel
bans are imposed, making situations worse for the company (Zeyada, 2018). However, many of
the international destinations of Emirates may benefit from political stabilities.
Economical
As because of the global presence of the company, the revenues are is collected in various
currencies. Therefore, any fluctuations in currency and changes global conditions may lead to
fluctuations in revenue. There are great opportunities for the Emirates to mark its presence and

expands its market in Asian or European market where market of airline is growing at faster
pace. However, one factor that may hinder the performance of Emirates is oil, the fluctuations in
prices of oil makes the situation worse and affects its business.
Social
The company saw a sudden growth in its ticket sales particularly from various developing
countries. Most of the people prefer to travel in the planes but because of the high prices its not
possible for middle class people to travel in planes (Alshubaily, 2017). However, high
competition in the airline industries lead to cut in the prices of the tickets and thus make it
possible for many people to travel in the plane. Moreover, growth in the tourism sector also
contributed to Emirates in increasing its overall sales.
Technological
Emirates is highly dependent on technological advancements. In today's era, the technology is
changing rapidly and any changes in innovation has now benefit only for few years. So every
few years, there is breakthrough in technology obsolete. Therefore, its essential for Emirates to
keep up with every technological changes to remain in the competitive market. Emirates also
developed navigation techniques which allows the airline to carry extra cargo.
Environmental
Emirates also faced many issues related with environment. As increasing demand of the folks
to solve the problem of environmental changes has now forced Emirates to make changes in their
strategies. Hence, the fuel that come from aviation is consider a major contributor to global
warming and aircraft consume a lot of fuel (Abu-Rahma and Jaleel, 2019). The landing process
of air-planes almost take 25% of fuels. So, now the demand is arising from the people that those
planes should be used by companies which consume less amount of fuel. If possible for the
company than they should take initiative to run on greener fuel.
Legal
This factor consists the lawsuits by other companies, governments and folks against the
company. The European supreme court has imposed compensations on emirates airlines. The
passengers of European now have right to demand compensations on delays of planes. The
lawsuits can be costly and ruin the brand reputation of Emirates (Alshubaily, 2017).
Stakeholder Analysis