Sabic Management Planning and Performance

The provided document is an analysis of Sabic's management planning strategies. It highlights the importance of proper training and development sessions to reduce complaints in the workforce. The document emphasizes the need for management planning to ensure the success of the organization, improve employees' morale, and increase profitability. It also discusses the significance of investing in employee welfare, reducing gender gaps in the workplace, and improving environmental health and safety. The analysis is based on various references from books and journals that provide insights into effective management planning and strategies.

MANAGEMENT
PLANNING FUNCTION
PROJECT

Table of Contents
Introduction......................................................................................................................................3
Subject..............................................................................................................................................3
Conclusion.......................................................................................................................................6
References .......................................................................................................................................7

Introduction
Management planning is a process of monitoring the organization goal and makes a plan
to achieve it. Management planning helps the company to utilize their resources to its fullest.
Effectual plan can help the company to make more revenues and brand equity. The future plan
should be realistic and attainable as fictitious plan can harm the companies in a negative way. In
this report two companies are taken into consideration i.e., Emirates airways and Sabic a
petroleum company. These companies should use management planning to expand their business
and improves their performance thus increase in profitability of the company. Main purpose
behind conducting this report is to analyse goals which have been attained by companies. In this
report, different ways, methods and sources are use to analyse the purpose about achieving goals.
Subject
EMIRATES AIRWAYS
Emirates is an airline company which is owned by The Emirates Group headquarters in
Dubai, United Arab Emirates. It is the largest airline company in middle east and operates in
more than 140 cities in 81 countries in six continents. Emirates airways is one of the largest
airlines in the world as it operates 3600 flights per week from their hub i.e., Dubai International
Airport (Goetsch and Davis, 2014). Emirates is one of the top company in context of revenue and
passenger kms. With the help of management planning Emirates airways has set their goals and
purpose of existence and try to achieve it within the set deadlines. Goals which have or have not
been achieved by Emirates airways are describe below,
 Increase profit up to 30% in 1 year
In 2016-17 Company profit was AED 1.3 billion and in the next year they have achieved
a growth of 124% and recorded AED 2.8 billion as profit. Emirates started their operation in
many new cities through which customer base increased gradually thus increase in profit. Apart
from that they have started using Lean management due to which their operating cost decreases
to a certain level. Emirates airways have save their big amount of money with the help of
management planning as the employees working in the company is according to their pre set
strategies. Consequently due to the local company of the UAE, there is a relaxation of tax as in
2016-17 airlines brings more than 250000 Australian visitors in Dubai.
 Biggest plane in the world by capacity

Emirates airways have started their business in 1985 and after 20 years they have
achieved the target of flying the biggest plane in the world. It was done by using latest
technology and increasing the size of the wingspan in the Airbus A380 apart from that it have 4
powerful engines that helps them to provide a smooth flight to the customer. Consequently
unique feature of Airbus is Auto throttle and the yoke moves which different this plane from
other plane in the world (Austin and Pinkleton, 2015). Other than Airbus Boeing 777 is also one
of the biggest and largest plain in the world. Total passenger and cargo capacity increases
In 2016-17 Emirates total capacity was 60 billion but in the next year they have crossed
the 61 billion mark. This was done due to the innovative approaches used by the Emirates like
reducing the prices by 7% thus helping the company to allure the potential customers. Company
has regularly try innovative styles like coupons, lucky draw, premium service, free tickets so to
attract the customers. Emirates airways has improve their cargo business as improvement in
supply chain management and logistics so to improve the customer experiences (Yeomans and
Huang, 2015). Company has also increased their frequency of flights in those countries who
were giving more business in Cargo to increase their profit and numbers of supplies.
 Increase the revenue by 12%
The main target of Emirates airline is to increase their revenue so that profit could
improve. In 2016-17 their revenue was USD 23.2 billion dollar and in the next year they have
achieved their target by generating USD 25.2 billion dollar. The main reason behind their
success was high investment in the marketing activities like advertisement, hoardings,
sponsorships etc. Emirates airways has invested in sponsorships as they sponsor Cricket
Australia, pro arch tournament etc. Besides this the name of the company is also features in the
shirts of the umpire in Cricket. Airways could use their cargo space while fitting the customer
baggages thus charging them extra and helping the company to increase their profit for a certain
level (Schönsleben, 2016).
Failure: Reduce Operating cost by 3%
Emirates wants to increase their profits by reducing operating cost. Total operating cost
in increased by 7% in 2017-18 year. The main reason behind this failure is fuel cost. Total fuel

cost in 2016-17 is 25% of operating cost and in next year it is 28%. Cost of fuel is increasing
gradually thus increase in operating cost. Emirates airways can decrease their operating cost by
flying single aircraft thus reduce in the cost of spare parts, training and development to the
employees etc. Company should focus on high passenger route so that operating cost will be
cover up by increasing the profits (Kerzner and Kerzner, 2017). Airways should introduce extra
premium seats so that more profit would be earn from them. Buying new aircraft to acquire more customers and cities
Acquiring more customer leads to increase in profits and revenue of the Emirates
Airlines. In 2016-17, Emirates have acquired 35 aircraft so that more customer would be allure.
But in the next year they have only 17 aircraft. The main reason behind the degrade in
performance is currency value and its fluctuation. Fluctuation in the currency of dollars and euro
is to main factor of inflation due which Emirates does not invest much in their technology.
Company has also started to lease their aircraft to other company so to improve the customer
base and brand equity in the competitive market. Emirates Airlines strategy is to invest more on
buying the aircraft so that they can create their positive brand image in the mind of their
customer besides this expand their business to reduce the business risk ratio. Apart from that
their plan is to make their planes efficient so that they wont harm the environment and attract
more investors (Aher, Adinarayana and Gorantiwar, 2014).
SABIC PETROLEUM COMPANY
Sabic is the largest public sector company in the middle east. It was founded in 1976 and
headquarters in Riyadh, Saudi Arabia. Sabic petroleum company deals in chemical like it is the
second largest company which produces ethylene glycol and third largest manufacturer of
polyethylene. In 2014. Sabic was ranked fourth by Fortune Global 500 in chemical companies.
With the help of management planning Sabic petroleum company has made goals and objectives
for their company which they have to attain it under the deadline. Goals have or have not been
accomplished by the company is described below,
 Decreasing in greenhouse gas emission intensity
Environment is the main concern of all the companies in this sector and to save the society and
environment Sabic has improved their carbon dioxide plan. Due to which carbon emission
reduced to 1.23 megajoule from 1.24 megajoule. Apart from that out of 11 asset of Sabic,

company has applied for seven high selectivity catalyst. It reduces the carbon emission thus
doing their part in saving the environment.
 Improve in environment, health,safety and security rate by 10%
Protecting the environment, health, safety and security (EHSS) is the main focus of the
company and stakeholders. Everyone wants to save the environment where they are living. Sabic
has done their part in an excellent way. Sabic main motive is to promote a culture and climate
where everyone wants to attain the EHSS goal. Sabic has recorded the 21% decrease in EHSS
rate in 2017-18 as compare to 2016-17 EHSS rate. Apart from that Sabic has launched 46
competency development program which helps the company to reduce their safety incidents.
Moreover after the inquiries of 12669 customers, Sabic has improved their process to save the
environments (Gallego-Ayala and Juízo, 2014).
 Contribution in welfare
Company should give to their society as it somehow help the Sabic to improve their
goodwill in front of customers and government. If the company is contributing in the welfare of
the society than more customer are interested in investing in the company. Sabic has invested
57.5 millions dollars in 2017-18 in the welfare of society and environment as compare to 46.4
millions dollar in 2016-17.
Failures
 Increase number of women in workplace by 10 %
Middle east is a place where men don't like to work with women. Sabic has introduced new HR
model in which they would motivate the other qualified women to work with them. Apart from
that they have start investing strategic workforce planning through which proper number of
females should be recruited so to decrease the gender gap in the company. After doing all this in
2017-18 percentage of women working the Sabic has reduced from 7.7% to 7.2%. Sabic should
give motivation through giving bonus, incentives etc so that women will attract to that.
 Increase in patent portfolio by 5%
Launching a new and unique product is hard for the company. Sabic has achieved 12191 patent
in the 2016-17 year and has the target of increase of patent in 10%. Patent can be use to gain the
competitive advantage over a period of time as they can not copy their products thus gives the
time to create sustainable competitive advantage. Consequently Sabic can earn more by selling

the permit to others to use their product and can collect royalties from them. But due to the poor
management and old technology Sabic has only attain 11534 patent in 2017-18. The main reason
was organizational changes and business priorities due to which Portfolio sustainability
assessment is also shift for 2018-19 (Grady, 2016).
 Reduce complaints in the workplace:
Healthy working environment motivates the employees to work harder and give their
performance at its best. Complaints in the workforce increase from 94 to 114 in a year. Proper
training and development sessions, workshops, seminar should be given by the Sabic so to
reduce the complaints in the workplace (Warner, Bach and Hickey, 2014). Sabic should make
their environment working friendly as motivated employees will give their best performance thus
affects the profitability of the Sabic.
Conclusion
Management planning is the important factor in the success of the organization as it helps the
company to make competitive strategies. Apart from that it also helps in workforce planning,
expansion of business, improvement in performance of the company etc. Consequently it
minimizes the uncertainties of the future, improves employees morale to its fullest and help in
attain the economies of the company. Company should invest in the welfare of the society as it
improve the goodwill of the company in front of their customers, stakeholders and government.
Moreover company should spend in improving environment, health,safety and security as
employees are asset for the company as due to their skills and capabilities company increase
their profits. Company should try to reduce the gender gap in the workplace as it will help them
to create a friendly working environment in the company.

References
Books and Journals
Aher, P. D., Adinarayana, J. and Gorantiwar, S. D., 2014. Quantification of morphometric
characterization and prioritization for management planning in semi-arid tropics of
India: a remote sensing and GIS approach. Journal of Hydrology.511. pp.850-860.
Austin, E. W. and Pinkleton, B. E., 2015. Strategic public relations management: Planning and
managing effective communication campaigns. Routledge.
Gallego-Ayala, J. and Juízo, D., 2014. Integrating stakeholders’ preferences into water resources
management planning in the Incomati river basin. Water resources management.28(2).
pp.527-540.
Goetsch, D. L. and Davis, S. B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Grady, J. O., 2016. System management: planning, enterprise identity, and deployment. Crc
Press.
Kerzner, H. and Kerzner, H. R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Schönsleben, P., 2016. Integral logistics management: planning and control of comprehensive
supply chains. CRC Press.
Warner, A. T., Bach, L. B. and Hickey, J. T., 2014. Restoring environmental flows through
adaptive reservoir management: planning, science, and implementation through the
Sustainable Rivers Project. Hydrological Sciences Journal.59(3-4). pp.770-785.
Yeomans, J. S. and Huang, G. H., 2015. An evolutionary grey, hop, skip, and jump approach:
generating alternative policies for the expansion of waste management. Journal of
Environmental Informatics.1(1). pp.37-51.