As a result of reliable work and the advantages of this partnership in over 23 years, the DACCA became the only shareholder of he company in 1998, after Diddle was the only one since 1978. Meanwhile the enterprise started to maintain new airships as well as helicopters. Although the business was running quite well, or just because of this fact, the executive management of the Rare-Dints Gumbo & Co. KEG decided to establish an office at the Templeton airport in Berlin in after the German reunification in 1990.
Back then, this settlement represented the base in the new German states and served as a kind of bridge to the former COMMON-states. But the enterprise held that office for just seven years, before it was converted into the independent many Beseechers Berlin Aviation Gumbo. After the Millennium in 2000, the Rare-Dints decided to cease the helicopter- branch, and started focusing on the airship field. In the course of this the company was able to celebrate the openings of their locations in Vienna (2006) and Dјscolders (2009). In fact, the Rare-Dints Gumbo & Co.
KEG includes 4 industry sectors. All of them are operating in the field of private and business aviation. 4 A/C Management Since decades, the enterprise executes aircraft management on a high level. Its clients appreciate the company for its professional and reliable service with the shiest possible safety standards. The service gives the customers the ability to enjoy every positive aspect of a firm airplane, without the need of making up an own aviation operation. This keeps the company from high personal costs and also from the administration effort.
Furthermore, the sector is divided into two types of management. On the one hand, the TurnKey Management includes a complete service package, whereat Aerodromes attends every displeasing work for the client. On the other hand, the customized management was developed for clients who want to personalize their service to their special needs. A/C sales The sales sector of Rare-Dints is divided into two different branches. As well as the company sells new airplanes, the sale of used ones plays an important role in their business.
Here, the potential clients can benefit from over 50 years of experience in the field of aviation. Just to mention only a few aspects out of their offer, the maintenance of the sold airships is, as well as the counseling with financial questions, a highlight. Furthermore the maintenance represents the synergies within the company. A/C Operations Essential for the success of the companies A/C Operations branch is the high liability and flexibility. Linked with the highest level of safety, the Rare-Dints subsists one of the most successful Operation branches when it comes to business aviation.
Both, the chartering of an airplane to react to the moves on the market, and to charter an ambulance fleet when one gets sick or has an accident in a foreign country, Rare-Dints gives you the possibility to deal with it in a laid-back way. The Strategic Position of A/C Maintenance The strategic position of a company or a company’s branch can be described and evaluated by several different methods. Every one of these schemes is included in the so called ‘Classical Perspective. In the following two of those approaches are highlighted for evaluating the strategic position of the Rare-Dints branch A/ C Maintenance.
The Classical Perspective The classical perspective with its basic assumption of rationale and mechanistic markets, organizations and business is a promising possibility for analyzing and predicting with only one aim, minimization of profit. In 1993 Gerry Johnson and Kevin Schools defined the so called ‘Classical Approach to Strategy. According to the two of them there are three steps which re describing the process of strategic management. With the objective of perceiving the strategic position of an enterprise, a strategy analysis is the initiation of the process.
For the second step, the strategic choice, a selection of an applicable strategy along with the given strategic options is necessary. Finally, to get the ball rolling, the strategy has to be implemented. With this general approach Johnson and Schools set the base for a variety of tools in the world of strategic analysis. Using those tools, a company is able to examine internal, as well as external issues affecting their specific situation. Caused by the level of complexity and organization of the tool’s subject, there are different categories where they can be located within the overall SOOT-Analysis.
The so-called ‘first tier tools’ can be seen as the ones with the highest probability to aggregate into the top level of strategic analysis. Like the first tier tools can be amounted into the SOOT-Analysis, the more exceptional second tier tools are able to support the first tier tools. The lowest level of aggregation possibilities and most general standards includes the third tier tools like a break-even analysis or the enchaining. Below, one of these tools is used to visualize the strategic position of the Rare- Dints branch A/C Maintenance. Muckiness’s AS Model The Model was developed in the ass by the former corporate consultants of the McKinney agency, Richard Upscale, Tony Ethos, Tom Peters and Robert H. Waterman. On their way to perceive the most critical criteria of the success of a company they defined a method which highlights interrelations and to give an integral assessment of an enterprise for launching a strategy formation. Within this scheme, 3 hard factors, representing the concept of success compared to the competitors, as well as 4 soft factors, which cover the concept of leadership.
On the top half of the image, the 3 hard facts, strategy, structure and systems are illustrated. The strategy points out the long-term aims and the major means of a company. The structure shall represent the organization, the hierarchy and the coordination and the systems of a company include the operative processes. Surrounded by 6 other facts and in the middle of the image, the subordinate goals, or shared values, represent a company’s mission and its raisin d’©tree and is the linking point for all of the remaining actors.
On the bottom half, the three remaining soft factors, beneath the shared values are shown. The skills are a collection of an enterprise’s competences, the staff factor refers to the company’s employee base and the leadership principles are meant by style. Using the AS Model for analyzing the position of a company and for a reasonable result, the relationships between the 7 criteria have to be examined concerning the conflict risk and the success possibility. When it comes to strategy formation later on, the result of the analysis should be considered. AS Model Rare-Dints Gumbo & Co.
KEG A/C Maintenance As told before, there are 7 different criteria, which are important for the AS model analysis. Beginning with the skills of Rare-Dints some remarkable features are to be seen. Beneath the fact that the company is an accredited service center for the maintenance of airships for the big jet producers Challenger, Learner and Falcon, it is also a so-called major channel partner and a recognized maintenance facility to a variety of jet engines from Honeywell, General Electric or Pratt & Whitney. As an 7 international and quality proven maintenance and development enterprise,
Aerodromes enjoys the public confidence to the fullest. Furthermore, the company enjoys good reputation when it comes to another soft fact. Speaking of the staff of the enterprise, one cannot negate that he is able to deal with absolute professional and very well trained workers. When it comes to the style factor, one can recognize flat hierarchies and therefore short decision terms. For a company like the Rare-Dints this is very important. Because with those short ways, they can make decisions quick and based on this fact, they are able to comply with the specific wishes of a customer just-in-time.
Concerning the hard factor structure, the Rare-Dints is to be seen as mediumistic company. Its three offices in Emerging, Dјscolders and Vienna are including 150 workers in the A/C Maintenance branch. With its strategy of sustainable expansion, the enterprise made it to the top of German providers, when it comes to aviation and above all the maintenance. The objectivity and the independence of the producers, was reached through a wise product diversification. As a company, the Rare-Dints is an independent quality management organization with a variety of certificates from countries all over the world.
Putting these factors together, one can say that this enterprise bears a lot of responsibility for its decisions, not only because of the industry they do their business in, also for the cycle within the company. Furthermore, they are able to base their decisions on serious facts and figures. 8 For describing the industry structure of Rare-Dinette’s A/C Maintenance, Michael E. Porter’s model of the five forces is used. Porter’s five forces In 1979 Porter came up with his model of the five forces. Defining a model for industry analysis and business strategy development, Porter’s model became the cost famous tool to accomplish an analysis.
Aiming for an assessment on the attractiveness of the business the company deals with, the analysis evaluates the forces which could decrease its attractiveness. Finishing the industry analysis with porter’s framework, a company discusses the strategic means to counteract, compensate or to neutralize the diminishing forces. A very important point is the fact that this framework is not referring to the enterprise itself, in fact it refers to the business the company is in. Subsequent to the analysis, the company defines its specific way of reducing the decreasing forces.
To conduct that, the enterprise must have understood, how the business acts, they must have understood the rules of the game. The image above shows the structure of Porter’s five forces framework. Those forces describe the forces which have an external impact on a defined business. It can be seen that two of the five forces apply the threat of something, whereas two of the remaining three, deal with the power of the customers and suppliers. Therefore the question standing above everything is for the exact definition of the business the company is in. When this is clear, the forces can be described ND evaluated.
Threat of new entrants This force refers to 5 big factors. Beneath the switching costs and the barriers of entry, the differentiation respectively the specialization play an important role. Furthermore, a company hast to regard the economies of scale, which it can achieve through synergies, as well as it has to attend the access to the different distribution channels. Threat of substitute products The force of the threat of substitutes deals with the relationship between the price and the value and, as well as the force mentioned before, with the switching costs.
Bargaining Power of suppliers Alike the two other forces already described the power of suppliers also applies the switching costs which will come up. Furthermore it also concerns the differentiation respectively the specialization. Besides, it evaluates the potential for forward integration and the volume of purchases. Bargaining Power of buyers To make money, an enterprise has to sell their products or their service. Therefore, the power of the buyers is a very important factor. Equally to the power of suppliers, this force attends the volume of purchases, the differentiation.
The switching costs are attended to, but this time they are meant or the customer. Representing new factors, the availability of substitutes, the concentration and the potential for backward integration, are integrated in this force. Competitive rivalry within an industry The intensity of rivalry refers to the strategic stakes, the exit barriers, as well as the capacity load and the cost factor. Furthermore the industry growth and of course, the number and performance of competitors play an important role.
Considering the pressure of the other four forces, the intensity of rivalry is a result of the executed pressure. Porter’s five forces Rare-Dints Gumbo & Co. KEG A/C Maintenance The following part describes the industry structure of Rare-Dints with the help of Porter’s five forces framework. In 1958 the Rare-Dints Gumbo & Co. KEG entered the business of Aircraft Maintenance. Back then, the barriers of entry were not as high as they are today. Due to the fact that Rare-Dints was one of the first companies to enter this business, it was always more easy for them to gain ground.
The differentiation towards the different airship models and the maintenance for airships produced by different manufacturers gives the company the chance to work in a quite large field. Since the industry sector of maintaining private or firm jets is quite particular, the access to distribution channels is not as important and not as difficult as in sectors which are for a wider mass. Concerning the economies of scale that Rare-Dints stands there pretty good. Through high-qualified workers and well planned and on time accomplished processes, the company is able to put pressure on possible competitors.
Threat of substitutes The risk of substitute goods can be died down to every other mean of transport. Although there is a variety of replacement possibilities, but in fact none of hem is able to compete with an airship for real, when it comes to long travel. Therefore, the A/C Maintenance is a unique service and it is very hard to replace it. Besides, even if other ways to travel from one place to another may be cheaper, nowadays time is probably the most crucial, valuable and most expensive factor.
Thus, regarding the profit over the years, no decrease could be recognized Bargaining power of suppliers Concerning the power of suppliers one has to say that it is quite difficult to define them. Of course, without airships and the associated maintenance, there would to be any employment for the company. There would be a massive drop in order contracts. Otherwise there are evident suppliers as well. When a repair is required, and some spare parts are needed, the producers of those replacement parts are important suppliers of A/C Maintenance. 1 Bargaining power of buyers Even if the availability of substitute goods is quite high, like mentioned before, there is no real competition for airships, what includes a decrease of the buyer’s power towards the market. Because of the complexity of the market, the power of buyers is not as high as in other industry sectors. Neither the customer sector is able to threaten the company with backward integration, nor it possesses entire information about the service and simply do not has the know-how to accomplish the maintenance of an airship.
Regarding the four forces putting pressure on the intensity of rivalry, it can be seen that the rate of intensity of competition within the business of Airship Maintenance, is quite low. This arises on the one hand especially out of the lack on serious competitors concerning the service as well as the quality and experience of Aerodromes. Furthermore the industry sector has good chances to experience an immense growth, because of the more and more global business and the bonded travel of the managers.
Here, the Rare-Dinette’s A/C Maintenance has a great chance to step in and be able to hold or even expand their leading position in this industry sector. To close the paper, the conclusion is a short and partly definition try, because to define strategic management totally correct, is probably one of the hardest tasks in business. Strategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitive advantages. This definition captures two main elements that go to the heart of the field of strategic management.
First, the strategic management of an organization entails three ongoing processes: analysis, decisions, and actions. That is, strategic management is concerned with the analysis of strategic goals (vision, mission, and strategic objectives) along with the analysis of the internal and external environment of the organization. Next, leaders must make strategic decisions. These decisions, broadly speaking, address two basic questions: What industries should we compete in? How should we compete in those industries?
These questions also often involve an organization’s domestic as well as its international operations. And last are the actions that must be taken. Decisions are of little use, of course, unless they are acted on. Firms must take the necessary actions to implement their strategies. This requires leaders to allocate the necessary resources and to design the organization to bring the intended strategies to reality. As we will see in the next section, this is an ongoing, evolving process that requires a great deal of interaction among these three processes.
Second, the essence of strategic management is the study of why some firms outperform others. Thus, managers need to determine how a firm is to compete so that it can obtain advantages that are sustainable over a lengthy period of time. That means focusing on two fundamental questions: How should we compete in order to create competitive advantages in the marketplace? For example, managers need to determine if the firm should position itself as the low-cost producer, or develop products and services that are unique which will enable the firm to charge premium prices-or some combination of both.