Strategic Management Report: Emirates Airlines - Corporate Strategies

This report provides a comprehensive strategic management analysis of Emirates Airlines. It begins with an executive summary and an introduction to the airline, including its vision, mission, and values. The report then delves into the airline's key performance indicators, financial trends, market share, and competitive landscape, followed by an examination of the macro-environment using PEST analysis and a competitive analysis using Porter's Five Forces. A SWOT analysis evaluates Emirates' current strategic position. The core of the report examines the relationships between corporate, business, and operational strategies, applying strategic models to recommend options. It evaluates critical success factors, recommends a strategic option with objectives, and identifies change factors through force field analysis. The report proposes a suitable organizational structure, creates a resourced implementation plan, and describes potential risks. Finally, it evaluates change models, identifies leadership skills, and develops a monitoring and control system, including key success indicators. The report concludes with a review of the strategic plan and areas for improvement, offering valuable insights into Emirates Airlines' strategic management approach.

Strategic Management

EXECUTIVE SUMMARY
This report describes the strategic management in an organization which is actually an
important function of the management. It has explained the position of selected entity in current
market and analysis of effects of existing plans have been done so as to help the company
survive in the long run. Furthermore, explanation of relationship between corporate, business and
operations strategies together with application of strategic models and tools for better
management of the organization. This is followed by an evaluation of various options available
for the business to make its position strong.
It continued to explain the vision, mission and strategic goals which should be
determined by considering the whole business. Without these, the doubts can grow which is not
good for the business. Furthermore, the applied strategic options have been evaluated with a
view to make improvements on the basis of variances assessed in this. Along with this, a suitable
structure for the organization has been suggested which is in consistent with the strategic plan.
Besides this, strategic plan has been prepared for implementation of resources as it is vital that
all the resources are utilised in an optimal manner.
Furthermore, force field analysis has been applied to make difference between variety of
forces that can contribute to change. It is important for determining the right reasons in order to
make plans. Also, change management models that have been used are critically evaluated by
showing the positive as well as negative aspects. It is significance for implementing the changes.
Moreover, leadership and change agent skills have been identified with a view to introduce
change within the company.
A monitoring and control system has been developed in which strategic plans have been
discussed. Every activity should be closely monitored for assessing the difference and to reduce
them. Key success indicators have also been included for overseeing the successful
implementation of strategic plan. A company can have desired output only when the plan is
applied and used in the decided way. Furthermore, potential risks which were present during
implementation have been recognised so that these can be eliminated. Lastly, the strategic plan
has been reviewed which has helped in finding the areas that can be made better. In this way,
every aspects of strategic management has been provided which is crucial for the success and
survival of the entity.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1 Business Presentation........................................................................................................4
1) Introduce organisation and evaluate its vision, mission and values statements with
recommendations for any revisions you deem appropriate.........................................................4
2) Evaluate organisations key headline data including trends in financial performance, share
price, market share, profitability and major competitors............................................................5
3) Define organisation’s industry and explore critical macro-environment forces that influence
it...................................................................................................................................................5
4) Critically analyse organisation’s competitive position in that industry..................................6
5) SWOT and critically evaluate organisations current strategic position..................................7
TASK 2 Essay..................................................................................................................................7
1) Evaluate relationship between organisation’s, corporate, business and operational strategies
.....................................................................................................................................................7
2) Apply strategic models and tools to recommend strategic options........................................8
3) Evaluate critical success factors/assumptions that underpin strategic options.......................8
4) Recommend and justify a strategic option and accompanying business objectives...............9
5) Identify change factors by completing a force field analysis for organisation.......................9
6) Identify change agents and propose a suitable structure for implementation of the plan.....10
7) Create resourced implementation plan for strategy, with justified timeline for
implementation..........................................................................................................................11
8) Describe the potential risks during the implementation.......................................................12
TASK 3 Reflective Essay..............................................................................................................13
Evaluate usefulness of change models such as Lewin, McKinsey 7s and Kotter and
recommend a specific model to support the strategic option along with that identify leadership
and change agent skills to display changes successful..............................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Strategic management refers to a continuous process which includes planning, analysing,
monitoring and assessing all the activities which is required to meet organisational goals and
objectives (Abeyratne, 2017). With the help of strategic management leaders and managers of
the company examine current situation of the company, chalk out plans and strategies, deploy
them as well as examine the effectiveness of executed strategies. This helps business to run their
activities and operations in an effective and efficient manner. In the present report, Emirates
Airlines is chosen as the base company which is based in Dubai, UAE . It is considered as one of
the largest airline in Middle East as they operates around 3600 flights in a week. Emirates
Airlines was founded in 25th March 1985 and commenced its operations in 25th October 1985. It
has been said that Emirates Airlines mainly focusing on providing passenger transportation
services. In the present report, various sections are going to be covered which includes vision,
mission of the company along with current position of organisation at competitive marketplace.
In addition to this, strategic tools and models are going to be apply in this report. In this report,
effectiveness of the strategic plan is going to be covered along with this potential risk is also
distinguished.
TASK 1 Business Presentation
1) Introduce organisation and evaluate its vision, mission and values statements with
recommendations for any revisions you deem appropriate
In order to conduct the present report in an effective manner, Emirates Airlines has been
chosen as the base company (Barros and Wanke, 2015). It is the subsidiary of The Emirates
Group, which is owned by the government of Dubai's Investment Corporation of Dubai. It is an
organisation which mainly focuses on providing passenger transportation services. The vision,
mission and value statement of the organisation are as follows:
Vision statement of Emirates Airlines- To became leader in environment protection,
aviation innovation and best airline in global market of coverage to compliance with
responsibility, product, service, reliability during travel without changing lives for better.
Mission statement of Emirates Airlines- To improve comfort for clients pleasure and
delivering high standard quality services.

Value statement of Emirates Airlines- The value statement of respective organisation is
based on customer satisfaction, emotional attachment, community engagement, high quality of
service and product, leadership, reliability, responsibility, innovation. For example, in customer
satisfaction, need and requirement of customer should be fulfilled. In reliability, they have to
provide 100% assurance for lost luggage, on time bags delivery, absence of accidents and others.
2) Evaluate organisations key headline data including trends in financial performance, share
price, market share, profitability and major competitors
There different data of Emirates Airlines are described below:
Financial Performance- Emirates in terms of total revenue per passenger kilometres
have been able to reach 289 million (Burghouwt, 2016). Which positions it as on fourth number
across globe. It uses its profit as a sharing on as part of a approach which is based on competency
and performance of its employees
Share Price- The share price of respective organisation keeps on fluctuating due to
change in value of share prices of other organisation.
Market Share- The market share hold by Emirates Airlines are differ from one another
such as:
Name of Places Percentage of Market Share
North America 23.00%
Latin America 7.00%
Africa 2.20%
Middle East 5.30%
Profitability- It has earned profit of $62 million in first half of 2018-2019.
Competitors- There are different competitors of Emirates Airlines such as: Qatar, Fly
Dubai, Malaysia, Lufthansa, Etihad, Cathay Pacific and so on.
3) Define organisation’s industry and explore critical macro-environment forces that influence it
Emirates Airlines is airline industry that is analysed with help of PEST which are
described below:

Political Factor- The laws made by government of a country impose strict regulations on
their operations and policies (Clark, 2016). There is also restrictions on monopolistic behaviour
of company which leads to increased competition for country and then forces them to keep their
prices low to survive in market. It also builds a pressure on them.
Economic Factor- Economic factors such as attacks of 9/11 has majorly affected airlines
industry. Also, fluctuations in prices of oil and global slowdown all these factors have affected
this has affected this industry in a negative manner. Recent event such as Disappearance of
Malaysian airline is also affecting aviation industry in a negative manner.
Social Factor- Millennial generation has bought many social changes, this generation has
become more demanding (Cook and Billig, 2017). To meet demands of this segment airlines
have to stable their overall cost. Passenger profile has become more economically minded. In
case of business class passengers facilities of communication has improved which has reduced
their travelling objectives. These have negatively affected their overall business.
Technological Factor- Emirates is focussing on adopting latest technology such as
online booking of tickets, this has increased ease for its customers. They are using technology to
decrease their overall cost of fuel which can help them in increasing their efficiency and
maintaining effectiveness in overall cost of operations.
4) Critically analyse organisation’s competitive position in that industry
The competitive position of Emirates Airlines is analysed through help of Porter five
force model which is described below:
Threat of New Entrants- The entrance of new threat is low as entry barriers is very high
(Dougan, 2016). In order to enter into airline industry capital requirement is high for purchasing
of aircraft which is difficult for new players. This industry requires high brand value, goodwill
for entering into market which is difficult at initial stage.
Bargaining Power of Suppliers- The product of industry is aircraft which has two
suppliers such as Airbus and Boeing who dominate market easily. The respective organisation
has low bargaining power as there are only two suppliers of products. Supplier has right to
charge any prices from organisation. In case of delay in delivery of product, rise in price of
aircraft leads to loss to business and revenue for organisation.
Bargaining Power of Buyers- The bargaining power is high as there are large number of
industry offering services to national and international routes. They can easily switch to other

service providers if quality and price are standard to them. Emirates Airlines has high bargaining
power of supplier due to many existing industry.
Threat of Substitute Goods- This industry provide two services such as economy and
luxury travel (Eriksson and Steenhuis, 2015). There is change in prices between two categories
that leads them to opt for economy travel for short distance. Apart from this, people also prefer
cheap mode such as cars, railways and others for short distance.
Rivalry Among Existing Competitors- The respective organisation has high
competitors for providing of services to their consumers. There are 37 flights flying over same
route and continuous innovation in offering such as reclining seats, spas and others.
5) SWOT and critically evaluate organisations current strategic position
The SWOT analysis of Emirates Airlines are described below:
Strengths Weaknesses
 It has skilled workforce of 50,000
staffs.
 It provide excellent customer service,
in flight entertainment and exclusive
lounges.
 Emirates Airlines depends on
international onward moving traffic.
 It has intense competition where there
is high market share growth.
Opportunities Threats
 The respective organisation has an
opportunity to expand international
destination.
 The alliance and joint venture with
global players provide more business to
respective organisation.
 There is highly change in government
regulation and policies.
 The increase in cost of fuel leads to
impact profit margins.
TASK 2 Essay
1) Evaluate relationship between organisation’s, corporate, business and operational strategies
Emirates Airlines is many time not very attractive due to presence of large threat of
buyers and presence of competition (Hagmann, Semeijn and Vellenga, 2015). Their corporate

strategy is to become one of top brands in aviation industry. Corporate strategy mainly focuses
on increasing overall value of company by making its operations more effective. Operations
strategy mainly focuses on final value being delivered to customers. In Emirates airlines
company has started focusing on increasing its quality of products by entertainment facilities,
making journey more comfortable for its customers, providing quality food to its customers and
many more. All these factors have made it easy for Emirates to form their corporate strategy
which basically aims to provide increased value to their customers and also increase their overall
satisfaction.
2) Apply strategic models and tools to recommend strategic options
There are different types of strategic model which can be used by organisation for better
outcomes. They are described below:
Strategic alliance- Emirates has formed a strategic alliance with Flydubai this has
benefited both these companies in improving their overall operations and effectiveness which has
lead to increasing of productivity of these companies (Kim, Jo and Shin, 2015).
Cost leadership strategy- This strategy is used by companies when they want to become
leader in terms of cost. They are able to provide lower cost in comparison to their competitors.
This strategy requires adequate research and then forming of appropriate strategy.
Divestment strategy- This strategy basically means to sale or liquidate a particular
portion of business, any profit centre or major division. It means restructuring a plan and then
implementing it in company. In Emirates airlines they have closed their linkage flight from
Dubai to Santiago in this way company has adopted divestment strategy in their company.
Diversification strategy- After a company has been able to create a position in market
then comes the stage where they can do expansion of their operations (Klimas, 2016). In a way
that could help company in establishing themselves in those countries where they are not having
presence. In case of Emirates Airlines also company is planning to introduce Airbus38 to places
such as USA, Boston and Glasgow.
After analysis of strategic option, it has been concluded that respective organisation has
to adopt strategic alliance which helps in providing benefits to business in terms of increasing
productivity and profitability.

3) Evaluate critical success factors/assumptions that underpin strategic options
The strategic option adopted by respective organisation is strategic alliance which
provide various benefits to organisation. It provide success in terms of gaining new clients and
adding competitive skills, entrance of new business territories, creating source of additional
income, building valuable intellectual capital and reducing risk. With adoption of such strategic
option, Emirates Airlines get benefits in terms of increasing profits and gain for business.
4) Recommend and justify a strategic option and accompanying business objectives
It is recommended to Emirates Airlines to use strategic alliance for their business to
achieve business objectives. This provide various benefits for growth and success of firm at
competitive market. With this, respective organisation can develop their business strategic
options. The main objectives is to provide high quality good and services to consumers in an
effective and efficient manner. With help of such strategy option, it is possible to get profits and
gain. Therefore, such strategy is recommended as strategic option for accompanying business
objectives.
5) Identify change factors by completing a force field analysis for organisation
There are various change factors which are as follows:
Facilitating Factors- These are the elements available within or outside the environment
which as a result motivates the staff members in order to adopt change (Koroglu and Eceral,
2015). It has been identified that one of the factor which encourages managers to adopt change is
decline in morale of employees. It is essential for the managers and leaders of Emirates Airlines
to adopt change so that they can enhance the motivation level of employees.
Restraining Factors- In case of restraining factor there are various elements which
includes employee resistance, customers and governmental regulations who might not accept
change developed by managers of Emirates Airlines.
Apart from this model has been discussed which is as follows:
Force Field Analysis
It is a key approach used by organisations in order to study or examine change
management (Kotsi and Michael, 2015). This was developed in the year 1940 by Professor Kurt
Lewin. It is the method which mainly includes five phases, which assist in encouraging and
motivating staff members so that they can accept change arise within the organisation. All these
phases or stages are going to be explained as follows:

Phase 1- In the initial stage managers as well as leaders of the company requires to use
tools and techniques effectively in order to examine current situation of the marketplace. With
the help of this, managers of Emirates Airlines examine and measure the requirements and need
for change along with the area where change is required.
Phase 2- It has been identified that changes which are bought within an organisation
includes various kind of risks with them which affects the overall performance of the company
(Logothetis and Miyoshi, 2018). Therefore, in case of second phase risk associated with changes
are being analysed while implementing any kind of change. Managers of Emirates Airlines use
some strategies which assist in reducing risk associated with change implemented by
management team.
Phase 3- In this stage, it has been identified that managers as well as leaders of Emirates
Airlines examine areas where changes and modifications are required. Along with this, they are
the one who examine how these changes are creates and implemented.
Phase 4- In the fourth stage of Forcefield model, it has been identified that management
team of Emirates Airlines formulate and develop effective action plan with the help of which
changes can be implemented within the organisation. Along with this, it is the stage which
includes the whole process of modifications and alteration. With the assistance of this, managers
of the company develop effective changes which enhance the overall performance of an
organisation.
Phase 5- It is the last stage of Force field analysis model where management team of
Emirates Airlines evaluate their current strategies and policies so that they can develop new
plans if required. After evaluating the strategies, managers perform their task as per the
requirement.
6) Identify change agents and propose a suitable structure for implementation of the plan
Change agent is defined as person from external or internal organisation that assist in
transforming themselves on improvement, development and effectiveness of business
(O’Connell, and Bueno, 2018). Here, Organizational structure have different operation and
activities such as span of control decentralization, low specialization, and loose
departmentalization. It is visual diagram of a company which describe employees what do and
whom to report which use functions, markets, products, geographies, or processes as their guide,
and cater to businesses of specific sizes and industries. As the company gets bigger, an

organisational structure can be useful for new employees who can manages and operate it
effectively. It also help to draw the outline how certain activities are directed in order to achieve
the goal of a company in a well defined manner.
In the context of Emirates Abu Dhabi help in maintaining effective and smooth
functioning of organisation. There are different kinds of organisational structure such as
bureaucratic organisational structure, divisional or multidimensional and matrix structure. For
the company like Emirates which provide airlines services to customers and have large
operations across the globe. So for the large company with many business unit company have
must use divisional structure as it help manages to take decision effectively.
Divisional structure provide flexibility to management in taking decision which are
beneficial for growth and expansion purpose (Smith, 2017). It also help managers of Emirates to
organize the product and service as needs and requirements of customers. This kind of structure
allow to use more easily to implement business strategies and also emphasis on product and its
features. Emirates manager can also identify the geographies areas with the appropriate needs of
particular region and offer the services according the requirements. As in the case of Emirates
Airlines, company have to deal with different consumers across the world so this structure will
help in understand the different taste of end consumers and offer the services accordingly. This
allow for an reinforced adaptation and implementation of total business strategies that better fit
the demands of the international market. It also help in identifying of each and every department
and can be measured effectively. In addition to this manager are accountable for revenue and
sales of company in a well defined manner.
7) Create resourced implementation plan for strategy, with justified timeline for implementation
Strategy implementation refers to the execution of the plans and strategies so to
accomplish the long term goals of the organisation (Stolzer, 2017). It help to convert the
strategies into action of the organisation to achieve organisation aims and objective. This method
help firm to develop, utilises and integrates its structure, culture, resources, people and control
system to follow the plan of action to have the edge over other competitors in the market.
Strategy implementation plan
There are some key component in which company like Emirate can develop a plan in
effectively and efficiently.

Define goal and objective- In the case of Emirates company manager are maintain a
definite aim and objective on which they have to work upon. The scope of thee goals are depend
upon the size as well the sector in which they are dealing.
Schedule milestones- Company must have proper plan which help in development and
decision the future milestone effectively (Van der Linden, 2015). Company must have useful
plan which will improve the efficiency of employees and have clear vision regarding the role and
responsibility. It will ascertain employees as well management of Emirates to take effective
decision regarding their duty.
Allocation of resource: One of the core function of implementation of the strategy plan
is to ensure that organisation have proper resources which execution of plan successfully. So it is
important for management of Emirates to have provide all available resources to each
department so that every individual can perform their activities in a well defined manner. It also
help company to gather information regrading the funds and resources effectively.
Evaluate success: The last stage is to evaluate the success by defining the metrics of
company. Emirate must ensure that strategy which have been implemented is generating profit or
not. It is crucial to measure success to identify the position of a company in well defined manner.
The timeline for implementation of plan for strategy is four to five months as there are
several activities which has to be performed in proper manner.
8) Describe the potential risks during the implementation
There can be various risks face by a company during implementation of a plan which are
discussed below:
Competitive factors- Whenever a company is launching a new strategy there can be a
situation where competitors also launch a similar strategy, this may affect them in a negative way
and lead to failure of their plan (Wagner and Walton, 2016). Emirates airlines must make a
proper analysis of market before launching of a strategy or a plan.
Higher cost- Every plan has a forecasted cost but there can be a situation when during
implementation, this estimated cost is higher. This results into increased cost and whole budget
of company gets disturbed. Emirates airlines should make efforts that they are making accurate
forecasts for their plan and during implementation there is no exceeding of financial cost takes
place.