Strategic Management Analysis and Report for Emirates Airline

This report provides a comprehensive strategic management analysis of Emirates Airline. It begins with an introduction to strategic management and then delves into the airline's mission, vision, and objectives. The report conducts a macro-environmental analysis using PESTLE factors and an industry analysis utilizing Porter's Five Forces model to assess the competitive landscape. A capability analysis identifies the airline's strengths and weaknesses. Based on these analyses, the report proposes a strategic direction for Emirates and evaluates its potential effectiveness. The report concludes with a summary of findings and references used in the analysis.

STRATEGIC MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1. Mission, vision and objective statements of Emirates airline..................................................3
2. Macro environmental analysis.................................................................................................4
3. Industry analysis for Emirates.................................................................................................5
4. Capability analysis for Emirates airlines ................................................................................6
5. Proposed strategy for Emirates airlines...................................................................................8
6. Strategy evaluation for Emirates airline..................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is related to formulation and implementation of the major goals
and initiatives which are taken by top management of company's on behalf of the owners.
Strategic planning will help the company to find its mission, visions and objectives (Mauboussin
and Rappaport, 2015). The present report is based on Emirates airlines which is the subsidiary of
The Emirates Group and owned by the government of Dubai (About us, 2016). The report
explains mission, vision and objectives of the company. Other than this, environmental analysis
of the company has been done. Furthermore, strategy is proposed that help to gain competitive
advantage in the market. Apart from this, industry analysis has been done with the help of
Porter's five force model. Other than this, capability analysis has also been done through which it
is possible to find about the strengths and weaknesses of the organization. More than this,
strategy evaluation also helps the company to know about the effectiveness of the strategy that is
proposed for the growth of company.
1. Mission, vision and objective statements of Emirates airline
Emirates is the largest airline in the Middle East and operating their business in various
countries. Development of the mission, vision and objectives of the company will help the
organization to make strategic planning through which they are able to get their goals easily
(Masood and et.al., 2015). The major objectives and vision of the company are describes as
follows:
Mission of Emirates airlines:
Developing the goals of company will help to make the strategic planning effectively and
also it will help the organization to get their targets. The mission of the company is to deliver the
world's best in flight experience (Kreibig, Samson and Gross, 2015). More over this, they are
also having the mission of becoming the market leader in UAE. Other than this, the company
also has the mission of developing more business network in the world. Apart from this, they
have the mission of delivering high quality of services that help to support their business. On
contrary to this, the old mission of the company is only of becoming the market leader in the
airline industry.

Vision of Emirates airlines:
Vision statement is basically concerned with future actions of the company that will help
the organization on developing strategies for completing their visions. It is basically related to
find what Emirates airlines wants to achieve in future (Dyer and Song, 2015). The vision of
Emirates airline is to make civil safe, leading and sustainable visit. Other than this, they are
having the vision of managing profitable growth of the company through adding values in the
supply chain of customer. They also have the vision of providing quality innovative solutions
that help them to make focus on improvement of the services offered within the air transportation
industry. The vision statement is get focused on ‘What do we want to achieve? This is the major
thing that have to be found in the vision statement of an organization. Other than this, it is also
get focused on Economic value, customer orientation, employees’ focus, environment value and
many more. Through this, it is possible for the company to make proper strategies for achieving
the goals of the company.
As per the study the current vision statement of the company will be helpful in
motivating the employees. As everyone has to do some work for the organizational goals for
which it is necessary to make people motivated at the workplace. For this, the organization will
also pay incentives to the employees through which they will get attracted towards the work.
The identified visions also states about the importance of employee for the company. As
the vision statements explains that they are having aim of make the people feel safe in which the
employees of the company are also included. This will prove that the organization is also giving
importance to their employees as well.
Current issues your company is facing: The vision statement is based on the current issues
which are faced by the company in the market. The major issues which are faced by the company
is related to availability of substitute in the market. More than this, the organisation is also facing
the issues in development of the strategies to get solutions of the problems. Furthermore, the
company is also facing issues due to change in the requirement of the customers in the market.
Objectives of Emirates airlines:
Emirates airlines is having different type of objectives that help them to get competitive
advantage in market (Grant, 2015). The major objectives are related to retain and improve

market share of business class travelers. Other than this, they are also having the aim of
increasing the market share by 40 to 55%. More than this, they also have the aim to promote
tourism activities of Dubai.
The objectives which are decided by Emirates airlines are smart enough as the company
is has the proper resources through which they can get their resources achieved. Other than this,
the organization is also having the skilled workforce which is supporting them to get their
objectives in the market more over this, Emirates airlines is also operating their business
operations in more than 72 countries through which it is possible by them to achieve their
objectives easily in the market.
Development of mission, vision and objectives of the company:
As per the above mentioned mission, visions and objectives of the company is to achieve
more market share to increase their customer base. Other than this, the organization is having the
vision of providing safe travel to the passengers.
2. Macro environmental analysis
Macro environmental analysis is related to finding the external factors which can affect
the business operations of the company. It deals with the external and uncontrollable factors
which can affect the decisions making process of the organization. Macro environmental analysis
can be done with the help of the PETSLE analysis. It stand for political, economical,
technological, social, legal and environmental factors. Political factors: It is related with the international practices and regulations of the
company that can make impact on the business of Emirates airlines. This factor is an
major threat for the company that may can reduce the profits and business operations of
Emirates airlines (Cederholm, 2014). This factor is major issue for other companies also
as they need to follow too many regulations of the government. The range of political
along with legal factors involves government intervention on economic operations. The
entire sector is highly regulated and restricted. The main reason behind introduction of
government laws involve protecting passengers interested along with airline operations
safety measures.

 Economical factors: Economical factors are related with the economic issue of country.
As UAE is planning to make investment in development of more airports in Abu Dhabi
and Dubai. Fo this, the total investments of UAE in development of airport over coming
20 years will exceed Dh 71 billion (Bennett and Chorley, 2015). It can enhance the
business of Emirates airlines as it leads to increasing number of tourist. This is an
opportunity for the company as rise in the prices of currency will make them able to get
extra profit in market. But on the other hand it may also cause loss for the organization
because if the prices of the currency will reduce than the organization have to face loss on
that. It is beneficial for every company as it will be beneficial for the organization as if
the prices of currency will get decreased in market. Technological factors: Development of new technology affected airline industry
negatively and positively. The technology of teleconferencing reduced the need of live
business meeting. This is affecting the number of business travelers and on the sales of
business tickets. For example in, UAE the internet accounts are continuously growing
from 251,000 in 2001 to exceed 600,000 accounts by 2006. This will also help Emirates
in developing their business operations (Cohen and et.al. 2015). Technological factors
are the opportunity for the company as Emirates is also using latest technology in their
business operations. With the use of technology the company will be able to get better
results. Technological factors are considered as the opportunity for every business
organization because it help to make people attracted towards the organizational services. Social factors: Social factors are related to those factors which are related to the belief
and values of people. As UAE is multi cultured country they are having population of
3,754,000 in 2002 and 4,320,000 in 2004. due to increase in number of expatriates is
increasing, airlines firms' profits will increase as they also need to travel to their
homeland sometime (De Massis and et.al., 2015). It is considered as the major
opportunity for the company as UAE is the multi cultured country than it will make
impact on the customer satisfaction and their needs. More than this, Emirates airlines will
also be able to get more people attracted towards their services. This will be major
opportunity for every company as the country is having multi cultured environment.

 Legal factors: Various type of regulations are there which can affect the business of
Emirates airlines. Some major regulations such as security regulations, baggage
regulation and Civil aviation regulations. Emirates have to take care about these
regulations (Gonzalez-Brambila, Jenkins and Lloret, 2016). Legal factors can be
considered as the threats for the organisation because change in the legal dimensions will
make a great impact on the growth of the company. This may cause loss for every
business entity as change in the legal policy of the country can make impact on the
business operations of the company.
 Environmental factors: This factors are relate to ecological and environmental aspects
such as weather and change in climate. Emirates have to take car about the environmental
regulations of the country so that this will not make impact on their business operations
(Grönroos, 2016). This can also be considered as the threat for the company as damaging
environment will make a huge impact on the profits and brand image of Emirates airlines.
3. Industry analysis for Emirates
Emirates is planning to improve their business operations in the existing market for
which they need to do industry analysis through which they will be able to know about their
major competitors, bargaining power of buyers and bargaining power of suppliers in the market
(Kortmann, 2015). Porter's five force model will help Emirates airlines to conduct industry
analysis which is shown below: The threats of new competitors: Emirates airlines have the high brand value in the
market. In the airlines industry there are very less competitors exists. For example if any
another company having good brand image enters into the market than it can make
impact on the business of the organization (Luxton, Reid and Mavondo, 2015). This can
be a major threat for the organization. Through entry of new competitors the people can
get attracted towards the services of the new competitors (Porter's Generic Strategies,
2016). Other than this, they can offer the services in less prices than Emirates airline
which can make impact on the profits of Emirates airline. As the airlines industry is not
having more competitors so the treats of new competitors are very low for Emirates
airlines.

 The bargaining power of customers: Bargaining power of customers is related to
change in requirements of the customers. Change in the demand of buyers can make
impact on the business of the company (Morris and et.al. 2015). The taste of candidates
can be changed due to change in their income and also through the personal reasons. For
this, Emirates have to face loss in the market which leads to reduction in the profits of
the company. Bargaining power of customers are high as people always need different
kind of services. For this, it is necessary for the company to make innovation in their
offered services to make people attracted. Threats of substitutes: it is the biggest threat for business as availability of the substitute
products in market can make impact on the requirement of the people. As an example,
people can also use trains and buses for completing their travel (Nahmias and Olsen,
2015). As if people feel more comfortable and affordable prices in the substitute’s
services than it will make impact on the airline industry as people will not prefer to go by
air travel. As there are very less competition is there in the airlines industry so threat of
substitute is very less for Emirates airlines. Bargaining power of suppliers: Suppliers has the capabilities to change the market
trends by controlling the prices and quality of their products and services. For example
of travel agents increase their charges than it will make impact on the profits of the
company (De Massis and et.al. 2015). Other than this, Boeing and Airbus are the global
suppliers of the airline industry. If there are less suppliers in the market than the
company have to buy the services with a agreed prices. This may can also create loss for
the organization in market. There are many supplier are there of an air industry so that
the bargaining power of supplier is very less in this. Furthermore, the organization need
to worry about the suppliers as many options are there which are available for the
company.
 Rivalry among exiting firms: Rivalry among the airline industry is a very famous and
more than other industries. As there are large number of competitors are there which are
offering the best services at the best cost. As an example, many companies are there
which are also working on improving their market share and profits. Due to this reasons,

they are also working on offering the best services to make the customers attracted. More
than this, they are also doing promotions of their services so that they can increase the
profits (Gonzalez-Brambila, Jenkins and Lloret, 2016). If any existing firm will reduce
their prices or develop differentiation in their products than it will also make impact on
the profits and business operations of the company. As per the above proscription it is
found that Emirates airlines is having high risk from the existing rivalry.
4. Capability analysis for Emirates airlines
Capability analysis is basically related to the set of calculations that are used to assess
the requirement and specifications of the company. It help to find the capability of resources to
get the targets achieved. For doing the capability analysis Emirates should work on conducting
value chain analysis so that they will be able to know about their capabilities. Inbound logistics: It refers to the transport, storage and delivery of goods coming in the
business. Emirates has exclusive terminal which helps them to make their business grow.
Other than this, they are also having very defective yield management through which
they can make more investment in the business operations. More than this, they are not
having too much dependency on the suppliers through which they will not get affected
by the market conditions (Grönroos, 2016). One of the best example is Dubai
international airport. It is the busiest airport in Dubai for international passengers. Other
than this, it is also the 6th busiest cargo airport in the world. In 2015, DXB handled 78
million passengers, 2.51 million tonnes of cargo and registered 403,517 aircraft
movements. This is the major strength of the Emirates airline. Operations: It is related to managing the business process in the form of raw materials,
labor and energy. Emirates is providing best services regarding boarding and Lounge,
baggage and handling. Other than this, they are also have efficient staff to support their
business operations (Kortmann, 2015). As they are having very effective operations in
their business through which they can make the business successful. Apart from this, the
organisation is also able to get more positive response from the people. Through making
improvement in the business operations the company can also get more customer
satisfaction in the market.

 Outbound logistics: Out bound logistics is related to the process of storage and
movement of the final product and related to the information that flows from the end of
the production line to the end user. Emirates Sky Cargo is one of them. Emirates Sky
Cargo will help the customers to make easy carriage services to another city or country
(Mauboussin and Rappaport, A., 2015). Other than this, it will also offers a great range
of services, it is basically the cargo airline which is based in Dubai. Apart from this,
they are also offering the services on very affordable prices and also they are giving
proper secure services to the people. Marketing and sales: Emirates is having many business operations that gives support to
their marketing and sales plans. They have their official sponsorship and also they have
faced very less safety issues in the business operations. More than this, they have very
effective pricing strategy which help in getting the people attracted and also it will be
revenue generating for the company (Masood and et.al. 2015). For example they have
the slogan of “Fly Emirates”.
 Service: Apart from all the Emirates is also giving the best services to their customer
through which they are getting attracted towards the air travel through Emirates airlines.
More than this, they provide 24 hour check in service to the people (Kreibig, Samson
and Gross, 2015). Furthermore, ICE is there which help to make the people entertained
in the the flight. Through offering such kind of services the organization will be able to
attract more customers of the market. This is also the major tool which is making people
entertained. Furthermore, they are also giving the services of free WI-FI to their
Customer so that they can enjoy their travel.
Debt equity ratio of Emirates airlines:
2013 2014 2015
0.090 0.65 0.07
Financial leverage of Emirates airlines:
2013 2014 2015
8.2 7.76 8.01

Net margin percentage of Emirates airlines:
2013 2014 2015
45.5 49.03 56.34
Debt equity ratio of Jet airways:
2013 2014 2015
0.99 0.78 0.43
Financial leverage of Jet airways:
2013 2014 2015
3.44 3.1 2.7
Net margin percentage of Jet airways:
2013 2014 2015
3.09 6.89 10.55
As per the above description the organization is facing many issue such as decrease in the
profitability of the company will leads to decrease in debt equity ratio of the organization. Other
than whites, the issues faced by Emirates airlines are availability of substitutes in market and
competition of the market.
Resource audit: Resource audit is related to review the organizational resources through which
the organization will be able to find the get their goals in the marketplace. Emirates is having
sufficient resources through which they will be able to get their goals such as they are having the
strong workforce which is very experienced and skilled. More than this, they are also the largest
airline group of UAE which makes it more valuable brand of the country. Other than this, the
organization is also using the latest technological services to make the people more attractive for
the organizational services.
VIRO model: VIRO stands for value, rareness, irritability, organization. This model is the
business analysis framework that forms part of a firm's larger strategic scheme. It falls under the
category of internal analysis but also it is used as the framework in evaluating all about resources
and capabilities of the company. More than this, the company should also be able to know about

the process of competitive advantage in the marketplace. It will help the company to know about
the available resources of the company through which they can gain profit in the market.
5. Proposed strategy for Emirates airlines
Different types of challenges are faced by Emirates airlines while operating in the market
where major one is rise in level of competition. Day by day new companies are entering into the
market with different services and this in turn is having adverse impact on business. Apart from
this, to deal with this issue the proposed strategy is cost leadership, differentiation etc with the
help of which business can easily deal with the issue of rise in level of competition. Another
barrier being faced is economical one where due to slow growth in the economy purchasing
power of people has been adversely affected. Therefore, Emirates is required to reduce the
overall cost of services. Further, to deal with the overall issues being faced by business SWOT
along with TOWS analysis is beneficial through which business enterprise can easily know its
internal strength and this in turn can act as development tool for the enterprise. For overall
implementation of the proposed strategies there is no need to use internal growth or amny other
type of strategic alliance.
Swot analysis for Emirates airlines:
Emirates airlines is the largest airline group in Dubai. Before proposing the strategy it is
beneficial for the company to know about the strengths, weaknesses, opportunity and threats of
the company.
Strengths: The major strength of the organization is they have the strong backing of Dubai Govt.
Other than this, the major advantage is of being present in the oil rich Emirates. More over this,
the organization is also have the positive review regarding satisfying the customer for their
services. They are also having strong workforce of 50000 employees and has tremendous reach
of covering 72 countries in 6 continents.
Weaknesses: The major weakness of the company is they are having too much heavy
International Onward Moving Traffic. Other than this, the company is having limited market
share growth and high cost of managing bench mark standards.