Boogle Air's Strategic Business Management Plan & Implementation

This report outlines a business management strategy for Boogle Air, a new airline venture in Ras Al Khaimah, UAE. It includes an overview of the business's vision, mission, objectives, and core competencies. The report presents a thorough environmental analysis using market analysis, PESTLE analysis, and Porter's Five Forces model, assessing the competitive landscape and market share. It also analyzes organizational capabilities through SWOT and value chain analysis, leading to strategic formulation and implementation plans with action plans, KPIs, and resource allocation. The report further covers financial analysis using ROCE, net cash flow, payback period, and break-even analysis, concluding with a strategic control system for monitoring and evaluation. Desklib is your go-to platform for similar solved assignments and study resources.

Business Management Strategy

BUSINESS MANAGEMENT STRATEGY 1
Table of Contents
Introduction................................................................................................................................3
Overview of Business............................................................................................................3
Vision of Boogle Air..........................................................................................................4
Mission of Boogle Air........................................................................................................4
Objectives of Boogle Air...................................................................................................4
Core Competencies............................................................................................................4
Environmental Analysis.........................................................................................................5
Market Analysis.................................................................................................................5
PESTLE Analysis...............................................................................................................5
Porter’s Five Force Model.................................................................................................7
Existing Competition and Market Share............................................................................8
Conclusion..................................................................................................................................9
Analysis of Organization Capabilities...................................................................................9
SWOT ANALYSIS............................................................................................................9
Value chain analysis.........................................................................................................10
Other Tools and techniques..............................................................................................12
Conclusion and recommendation.............................................................................................13
Strategy formulation.............................................................................................................14
Strategic and functional objectives..................................................................................14
Strategy Implementation......................................................................................................15
Action plan.......................................................................................................................15
KPI...................................................................................................................................15
Resource allocation..........................................................................................................16
Strategy Implementation and monitoring.............................................................................17
Financial Analysis................................................................................................................18
ROCE...............................................................................................................................18
Strategic Control System..................................................................................................18
Net Cash Flow..................................................................................................................19
Pay Back Period...............................................................................................................19
Discounted Payback Period..............................................................................................19
Break-Even Analysis........................................................................................................19

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Summary Conclusion...............................................................................................................19
References................................................................................................................................21

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Introduction
The intent of this paper is to present a business management strategy for a new business idea
that is Boogle Air, which will be introduced in the Ras Al Khaimah as the airline company,
away from Dubai in order to target new segment. Business Management Strategy is an
organized advanced plan of actions intended towards planning and executing the procedure of
the business management process in a proficient manner in order to attain strategic objectives
and goals of the company. It is focused on establishing the business direction of the company
and stating strategies and management plans to follow this direction (Cokins, 2017). The
business management strategy is said to be a tool of prosperous business strategic planning
that supports in making high-level business decisions in relation to establishing long-term
goals and assigning resources for the execution of the policies and attainment of these goals
(Hafford-Letchfield, 2011). The paper will highlight different information related to the
development and execution of the new business ideas like the information related to the GDP
data in order to analyze the available profit margin for the company. Besides this, it will
analyze the available competitors in the market to frame the policies and strategies of the
business. With the support of PESTLE analysis, the report will analyze the available forces
that could influence the performance of the business.
Overview of Business
Boogle Air is a new business idea that will be established in Ras Al Khaimah of UAE. UAE
is considered as one of the Middle East’s largest economy with GDP of around $403.2 billion
in 2014. Besides this, the country has a diversified economy which offer different types of
advantages to the existing as well as new business ventures. Boogle Air will offer a different
type of luxurious as well as economy services in its three classes (economy, business, and
first class). The seats in the business class and first class could be converted into the

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comfortable bed. For kids all the classes will be comprised of different entertainment toys
and games. Besides this, the economy class will be comprised of comfortable seats, quality
food, and entertainment facilities (television).
Vision of Boogle Air
The vision of the company is to be established as the most developing low cost airline in the
UAE market.
Mission of Boogle Air
The mission of Boogle Air is to offer an unforgettable experience to the customers through its
best and quality services with a feeling of safety and comfort. The business has planned to
run its flights in different countries such as Singapore, India, Australia, across UAE, Austria,
Denmark, U.S, etc.
Objectives of Boogle Air
Boogle Air is aimed towards attaining a considerable growth in the UAE market with its
innovative and comfortable services to attract maximum number of customers.
The objective of the airline is to cover a new customer segment due to which the business has
planned to run its flights from RAK City. This will also support the UAE in increasing the
awareness of people regarding the development of the city and different adventurous places.
Core Competencies
 Boogle Air will operate both National and International Flights
 Low-cost carrier for the customers belongs to the middle class and low-class segment
 Good connectivity across the world

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Environmental Analysis
Market Analysis
The Ras Al Khaimah is one of the seventh emirates that make the United Arab Emirates,
which is also abbreviated, as RAK City. As of 2015, the total population of Ras Al Khaimah
was near around 3.45 Lakhs (Ras Al Khaimah, 2016). Ras Al Khaimah is said to be the fast
developing tourism markets of the United Arab Emirates. According to the reports, the
number of international visitors of RAK City has been raised by 14% in the first half of 2018
(The National, 2019). This record has broken the estimation of 4% of the World Tourism
Organization for the broader Middle East region. Considering this data, the idea of Boogle
Air has been identified in order to cover the most developing tourism market.
PESTLE Analysis
Political Factor
The UAE definitely has some different political forces that influence its position in the world.
All the seven emirates including Ras Al Khaimah have separate governmental structure,
which permits flexible management across the nation. Besides this, the nation has positive
trade relations with numerous nations around the globe (PESTLE Analysis, 2016). From the
analysis, it could be said that Boogle Air will not experience many of political barrier while
establishing its operations in the RAK City; however, in order to operate smoothly, it has to
comply with all the rules and regulations of the emirate.
Economic Factor
The United Arab Emirates has high GDP per capita with low unemployment rate. Besides
this, the country has high Foreign Direct Investment that supports UAE in developing and
growing on the international level. This data reflects that the customers in the nation has good
disposable income and can spend on traveling across the world. The Boogle Air will offer

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high-quality services at low prices, which will support in giving strong competition to the
high cost airlines and establishing itself as one of the successful airlines in the market.
However, the introduction of VAT that is Value Added Tax in the Saudi Arabia and UAE
market has had an adverse influence on their economies with increasing inflation. The
purchasing manager indices of UAE also revealed a fall. In December the nation has been at
the record level, but fell gradually, down to around 54.8 in March, it is being considered as its
second-lowest reading in a year (Gulf Business, 2019).
Social Factor
The residents of the country have a good standard of living, which reflects that they spend a
lot of traveling, comfort, and luxurious services. Besides this, the globalization is increasing
the diversity of population in the UAE, which increases the possibility of conflicts for the
company (PESTLE Analysis, 2016). However, in order to avoid conflicts company must
market its services such that it does not affect anyone's sentiments and emotions.
Technological Factor
In today’s era, technological factor is very prominent than ever. With the UAE' wealth and
increasing middle-aged population, technology is not an issue, however in order to operate
smoothly in the nation businesses must consider some of the aspects:
Comparatively, the young population is very tech-savvy, which let business in the nation to
take advantage of the technology while manufacturing their products (PESTLE Analysis,
2016). Boogle Air will be focused towards using advanced technology in its operations such
as seats that could be converted into a bed, television for the entertainment of the passengers,
etc. Besides this, the airline will offer the facility of WI-FI for its business class passengers.

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Legal Factor
In UAE, the government has framed a Federal Law No.6 of 1973, which is comprised of a
general principle related to outside guests to the United Arab Emirates. According to this
principle, every guest needs to have a visa in order to enter the country. Immigration
authorities present at the Emirate International airport can provide visa for ninety-six hours if
the visitor has a legal passport and a ticket for the next travel destination (Gulf Migration,
2018).
Environmental Factor
UAE has a hot, dry climate that can result in numerous diverse things. For instance, output or
efficiency can be lower, and farming becomes tough. Besides this, UAE is established near to
some of the coastal regions, which provide an advantage to business to trade through the sea.
Porter’s Five Force Model
Threat of New Entrant
The industry of airline requires high capital investment to enter in the sector. This reflects
that the exit and entry barriers are very high in the industry. As to take entry in the airline
industry, it is very important to have high infusion of capital due to which not every business
can take entry into the industry (Management Study Guide, 2019). This reflects that the threat
of new entrant is low for the existing business. However, for the new entrant such as Boogle
Air, it will tough and need to experience high barriers while entering the industry such as
competition and high capital investment.
Threat of Substitute Products
The industry of airline does not experience the threat of substitute products as in the
emerging world customers do not prefer to travel by bus or train. This reflects that flying is
the normal phenomenon for the customers and therefore, the alternates in terms of the bus

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and train are least in its impact (Pratap, 2017). Hence, the threat of substitute products is low
in the Airline industry.
Bargaining Power of Buyers
With the increasing awareness regarding online ticketing and the system of distribution, fliers
do not need to be at the mercy of the mediators as well on the airlines for their ticketing needs
(Management Study Guide, 2019). Besides the entry of low-cost airlines, the increasing price
wars have majorly benefited the fliers. This reflects that the consumers bargaining power is
high in the aviation industry.
Supplier Bargaining Power
The supplier power in the industry is high because the external environment influences all the
three main inputs that airways have like labor, aircraft, and fuel (Pratap, 2017).
Competition among existing players
The industry of airline is very competitive due to the numerous reasons like entry of low-cost
airlines, strict rules of the industry, etc. (Pratap, 2017). This reflects that Boogle Air will
experience high competition from the existing players in the market.
Existing Competition and Market Share
The Boogle Air will be established in the RAK City of UAE as the low-cost airline in order
to give strong competition to the existing players such as Air Arabia, Etihad Airline, etc.
Air Arabia – Air Arabia is the low-cost airlines of Emirate with headquarters in the UAE.
The airline runs planned services to around 151 destinations in North Africa, the Middle East,
and the Indian Subcontinent (Air Arabia, 2017). In 2018, Air Arabia has reported strong
financial outcomes being the largest and first low-cost airlines. It was reported around AED

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230 million in the first half of 2018, which is 12% less in comparison to the AED 260 million
for the 2017 first half period (Air Arabia, 2018).
Etihad Airways – Etihad Airways is listed as the second largest airways of United Arab
Emirates with headquarter in Abu Dhabi. The airways run around 1000 flights every week to
over 120 cargo and passenger destinations in Europe, Australia, the Middle East, and
America. In 2017, Etihad earned 6.2 million of revenue from the global passengers, in
comparison to the revenue of the financial year 2016 that is 18.5 million (Statista, 2017).
Emirates Airline – Emirates is the Dubai airlines, which is a subsidiary of the Emirate group
completely owned by Dubai's Government. It is considered as the Middle East largest airline
with operations of 36, 00 flights every week for the Dubai International Airport hub. In the
financial year 2017-18, the Emirates Airline moves just over 58.5 million passengers
(Statista, 2018).
Conclusion
The above section has highlighted the environmental analysis of the United Arab Emirates
for the business strategy development of Boogle Air. From the above analysis, it has been
identified that Boogle Air needs to experience economic downturn due to the introduction of
VAT in the UAE market. Besides this, being a new entrant it will experience intense
competition from existing players such as Emirates Airlines, Air Arabia, and Etihad Airlines.
Analysis of Organization Capabilities
SWOT ANALYSIS
SWOT Analysis is a tool used by the businesses to evaluate its internal weaknesses and
strengths along with its external threats and possible opportunities (Kurtulmuşoğlu, Can and
Tolon, 2016).

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For analysing the strengths and weakness of the company for grabbing the opportunities and
confronting the threats, SWOT analysis is used.
Strengths
 Boogle Air is a low cost airline that will attract maximum number of customers of the
domestic as well as international market
 The business will use advance technology in order to offer quality services to the
customers such as seat that could be converted into beds, WI-FI, and entertainment
equipment
Weaknesses
 Being a new entrant Boogle Air does not have a good brand image in the airline
industry
 Lack of knowledge and resources in comparison to other players in the market
Opportunities
 There are large numbers of people that lives in UAE from the Asian origin hence
company has huge opportunities in opening their flight routes for many of the Asian
countries (Wald, 2016).
 Boogle Air has number of opportunity in the semi-luxurious flight segment.
Threats
 The major threat for the business is the presence of number of competitors with strong
financial position (Ulrichsen, 2016).
 Decreasing global economic health is reducing the expenditure capacity of the
company.

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Value chain analysis
Value chain analysis is a procedure used by the businesses to recognize their own supporting
and primary activities that add value to its offering.
Primary activities
Inbound Logistics
 Routes: Boogle Air will operate its flights on 50 routes in six countries.
 Passenger Service: They aim to serve around 10 million people.
 Pricing: There pricing is on the lower side with average cost of around 60 pound.
 Fuel: The business will collaborate with different oil companies in order to avail fuel
at low prices. However, it will give major priority to acquire fuel-efficient vehicles
into the business.
Operations
 Flights and crew scheduling: The responsible department will be focused towards
managing the records of its total number of flights along with number of employees.
 Ticket Counter: Ticket counters will be available at all the destinations where
company will operate its business
 Safety Services: Safety manual will be strictly followed in order to ensure the
passenger and crew safety, for this Boogle Air will install different advanced
information systems
 On Board Service: The company will offer basic levels of amenities while some of the
food and drink items can be purchased by the passengers.
Outbound logistics
 Baggage System: They have arrangements for people carrying one bag.