Strategic Planning Of Emirates Airline Commerce

Table of Content

This Assignment includes three parts. The first portion is strategic planning of Emirates air hose. The 2nd portion discusses the type of determinations which are made in different degrees of Emirates and explicate the information systems used in these degrees. The last portion highlights the ethical issues involved in the organisation ‘s procedures.

The intent of this portion is to see the overall strategic direction procedure and see what is go oning in the environment in order to judge how those go oning may impact the organisation. In add-on there is a consideration of organisation ‘s strengths and failings and the chances and dainties that has important impact on the organisation procedure.

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1.1 Company overview

Emirates is a national air hose of Dubai in the Middle East. Emirates flees to over 100 finishs in 60 states around the universe from Dubai International Airport with a fleet of 137 aircraft. Emirates Air line has been existed for 25 old ages. Although Emirates is a immature air hose, over one decennary it has become one of the most well-thought-of trade names in the universe. The key of their success is utilizing new engineering and information systems in their concern procedures. ( Emirates group, 2010 )

1.2 Company ‘s mission:

By and large, Emirates ‘ growing has ne’er been lower than 20 per cent yearly, and the air hose has recorded an one-year net income in every twelvemonth since its 3rd in operation. Their attempt is to go on their explosive growing and increase the per centum of this growing.

1.3 Mission statement analysis

This analysis will assist organisation to uncover aims, ends and programs for accomplishing them which are of import for the long term endurance in the industry.

In any organisations, directors need to concentrate their attempts and resources on long-run, general aims, and provides a foundation for short-run, specific aims in order to accomplish their mission statement. ( Robson 1997 )

General aims:

As mentioned in mission statement, Emirates is seeking to increase the per centums of their one-year benefits.

Emirates carried 21.2 million riders and 1.3 million metric tons of lading during the old old ages ( Annual study, 2010 ) , and they need to transport 1000000s more across a turning web of international finishs if they want to increase their net income. Therefore their purpose is to supply the best service in the industry in order to hold more riders and lading.

Specific Aims:

Presently, Emirates ‘ flights account for about 40 per cent of all flight motions in and out of Dubai International Airport, and their chief purpose is to increase this market-share to 70 per cent by terminal of 2010 without compromising the repute for quality.

Furthermore, they are seeking to add 18 new rider aircraft to their fleet, addition seating capacity by 14 per cent. They besides plan to increase frequences on many bing paths every bit good as spread outing lading capacity by 17 per cent. These specific aims are all to back up the general aim which mentioned above.

1.4 Environmental analysis

The organisation ‘s environment is an of import point to be considered by directors because environmental factors can significantly act upon organisational operations. Good directors must be cognizant of their organisation ‘s environment and cognize how any alterations may impact the organisation and their organisation ‘s available resources. ( Robson 1997 )

Remote environment

Remote environment analysis lists all those events, issues and facts which will act upon the company public presentation, but over which they have small influence and those facts are normally out of control.

Nature of the environment

The United Arab Emirates ( UAE ) has the 7th largest proved oil, harmonizing to the Oil and Gas Journal in January 2009. Because of this geographics, United Arab Emirates has rich natural resources and high sum of natural resources of fuel. The handiness of big sum of fuel in UAE helps Emirates to supply fuel for its aircrafts much easier than its air hose companies. ( Business intelligence, 2007 )

Political challenges

One of the grounds that had important impact on Emirates was sing a downswing of their rivals because of the Gulf War. Gulf War was a war which took topographic point in the Persian Gulf between 2 August 1990 and 28 February 1991. Because of this political war, Emirates was the lone air hose to wing in the last 10 yearss of the war. ( Press, 2001 )


Dubai International Airport ‘s Terminal 3 was built entirely for the usage of Emirates at a cost of $ 4.5 billion. Terminal 3 is the largest edifice in the universe by floor infinite. The influence of this environment is that many people may desire to utilize this flight in order to see the largest edifice in the universe even though they have other pick of air hoses. ( Caswell, 2008 )

Industrial environment

United Arab Emirates ( Dubai ) , which was a fishing small town at the southern terminal of the Arabian Gulf, has grown to go one of the taking trade centre of the Middle East. Large figure of concerns and trades are running in at that place. This influences Emirates Airline profoundly because many people start coming to Dubai from oversee and besides many people need to flight to other states. Emirates, by supplying good air hose services, is one of the high demanded air hose in this state.

1.5 SWOT analysis

SWOT analysis is a basic tool for analysing the organisation ‘s position. SWOT analysis references organisations strengths, failings, chances and menaces.

A SWOT analysis defines the relationship between the internal and external assessments in strategic analysis. It is an exercising in designation and analysis. Analyzing the cardinal factors of the environment and the cardinal internal strengths and failing of the organisation will assist order the schemes appropriate to the houses. ( Robson, 1997 )


Strengths are the positive internal factors that add value to the company.

New concern thought:

One of the facts that makes organisations stronger is when they create a new concern thought. In 2005, Emirates began winging non-stop to New York. This happened when merely Delta Air Lines had the same service. Therefore Emirates started to give a service which was non provided by so many air hoses, and that helps them in increasing the figure of their clients


Another internal factor that makes the concern strong is holding good repute among clients. For illustration:

In 2009, Emirates was voted the 5th best air hose in the universe by research consultancy house Skytrax.

*Skytrax is a United Kingdom-based consultancy, the public face of Inflight Research Services

Competitive advantage:

Emirates has won some competitory advantages which made this company as one of the good air hoses. To reply this inquiry that how Emirates is able to retain its competitory place in the industry, looking at how good Emirates is functioning its merchandises could be the reply. Merchandise in Emirates is the services that air hose is supplying for its clients such as flight, nutrient.

aˆ? Flight

Emirates ‘s offering is divided into three chief lines ; The First Class place, the Business category place and the Economy category. In all three categories rider are provided by high quality and comfy seats, in-seat laptop power-outlets, and an ICE system on a LCD screen. Business and firs category have more installations include massage map, privateness divider, winged headrest with six-way motion, two single reading visible radiations and an overhead visible radiation per place, in-seat power supply, over 600 channels of amusement on ICE.

Emirates was the first air hose in the universe to present a personal amusement system on a commercial aircraft and that was a good ground for them to derive completive advantages.


These are the negative internal factor that destroys values of company or set the company in hazard.

Actually it is hard to state what are the failings Emirates, because Emirates is considered as one of the most well-thought-of travel trade names around the universe. However there are still some failings that Emirates need to better. I can state that one of the Emirates ‘ failings is holding expensive ticket monetary value particularly for the concern and first category. Emirates started to lose some of its client when Qatar Airline offered the same flight with cheaper tickets.


Opportunities are external positive factors that represent the ground for an organisation to be and develop.

One of the chances that can add value to the company is holding spouses, bureaus or distribution. Emirates has 6 subordinates and its parent company ( Emirates Group ) . These subordinates which are runing individually can give Emirates benefits.

aˆ? Emirates SkyCargo

aˆ? Skywards

aˆ? Emirates Official Store

aˆ? EmQuest

aˆ? Emirates Aviation College

aˆ? Emirates Engineering


Menaces are external negative factors which could put the organisation mission or operation at hazard.

Market demand

In the commercial air hose industry, unfilled place on a on a regular basis scheduled flight represents a menace cost to the operator. Although Emirates attempt to offer the best services for the travelers, it is non possible all the seats get fill during all the flights.

Rival purposes

Another menace that might be danger for Emirates is it ‘s competitory in the market. While Emirates has one of the most modern fleets in the industry, and has service degrees make other air hoses to emulate, and get down utilizing the same scheme that Emirates is utilizing.

( Williamson et al. 2004 )

Part 2: Information system Analysis

There are four managerial degrees in any organisation that are responsible for organisation ‘s programs and determinations ; strategic, tactical, cognition and operation degrees. In this subdivision, foremost the type of determinations that made in each degree is discussed. Later, the information systems which are used to assist the directors to do the right determination in that degree of organisation are listed. ( Laudon, 2001 )

2.1 Strategic Level

Decisions in strategic degree:

In strategic degree senior directors need to develop their accomplishment of doing the best determination possible. This type of determination normally concerns about general way, long term ends. These determinations are the least structured but they could hold important impact on the hereafter of the organisation.

One type of determinations that is made in the strategic degree is be aftering for deriving long term benefit, which is the Emirates ‘ aim. This type of determination could necessitate directors to add new finish in their flight agendas.

Another long term determination in Emirates is purchasing new air plane ( Airbus 380 ) . Buying a new aircraft is a strategic determination because director should see this determination is it traveling to profit them in hereafter or non.

Information systems in strategic degree:

Executive Support System ( “ ESS ” ) is the type of information system which is used in strategic degree in order to assist senior directors make strategic determinations.

A mentioned, doing net income is one of the Emirates ‘ ends. Net income Planning System could assist the organisation to catch this purpose. Net income planning system sets a net income mark for the approaching period. It is like a summarized version of estimated income statement. It starts with a prognosis of expected gross revenues and coveted per centum for gross net income maintaining in position the market conditions.

Another information system used in Emirates is Facilities Location system which helps director entree to external information decide where to turn up new installations. This type of system will assist in assemblage, analysing and summering the cardinal internal and external information used in the concern.

2.2 Tactical Degree

Decisions in tactical degree:

Decisions in tactical degree support the strategic determinations. They tend to be average scope, medium significance, with moderate effects. The informations used to drive this type of determination is normally found in sum-ups of everyday minutess e.g. gross revenues orders from the following degree or categorization. ( Laudon, 2001 )

For illustration in Emirates one of the chief strategic determinations is to increase the net income of the twelvemonth. Therefore the tactical determinations which are made by in-between degree directors would be how in-between procedure could assist this determination to be successful. The informations used to drive this type of determination is normally found in sum-ups of everyday minutess e.g. gross revenues orders from the following degree or categorization.

Decision about finding ticket monetary values or bring forthing a low priced ticket, or offering some seasonal publicity in order to pull more clients are those sort of determinations which are made in tactical degree. Another tactical determination in Emirates could be finding optimum engagement policy for multiple menu categories.

Information systems in tactical degree:

Management information system ( “ MIS ” ) and Decision-support system ( “ DSS ” ) are two of import information systems which support motion degree. Management Information System chiefly concerns with internal beginnings of information and normally takes informations from the Transaction Processing Systems and summaries it into a series of direction studies. ( Laudon, 2001 )

Budgeting System which used to fix short term budgets is an illustration of this type of system. All the Emirate ‘s one-year studies are provided by such system and they will be used by the center directors.

Another system which is used in Emirates is Pricing Analysis System which is for finding ticket monetary values and publicities.

Decision-support system ( “ DSS ” ) is besides one of the of import systems specifically to assist direction do determinations in state of affairss where there is uncertainness about the possible results of those determinations. This system helps in garnering relevant information and analyzes the options and options. Then the system provides spreadsheet and databases to make “ what-if ” theoretical accounts, and supply directors with the best determination to take. ( Robson 1997 )

A illustration of DSS in Emirate is Compensation Analysis System. This system provides a comprehensive overview of the organisation outgo, proctor rewards, wages and benefits for the director and they are able to be after.

2.3 Knowledge Degree:

Decisions in cognition degree:

The determinations in this degree are made by technology and interior decorator. This type of determinations involve making new investing, planing new calling waies and placing new markets. The information which is needed for this degree is structured internal cognition such as research studies, product-oriented selling metrical and techniques and methods. ( Robson 1997 )

Information systems in knowledge degree:

Knowledge Management systems are used in cognition degree. The purpose of theses system is to take paperss with cognition embedded in them, such as memos, studies, presentations, articles and hive away them in a depository where they can be retrieved easy. Examples of such system are:

Competitive Intelligent System which works based on a elaborate concern theoretical account that identifies what information it should roll up.

Market Analysis System which provides tools for analysis of fiscal markets utilizing proficient analysis.

2.4 Operational Degree

Decisions in operational degree

Operational determinations are every twenty-four hours determinations and used to back up tactical determinations. In the operational degree the day-to-day demand are reviewed in order to do the determination. Therefore, the operational determination is extremely structured and their impact is immediate, short term, short scope. The informations used to drive this determination type is normally prescribed or defined in the processs and regulations of the organisation. ( Laudon, 2001 )

Information systems in operational degree:

An Operational Information System is a category of information system which provide information base for the twenty-four hours to twenty-four hours operation of the air hose. In this system the information about visible radiations, riders, crew, situational, and environment gather. Some of these flows are carried by extra information such as rider booking via the cyberspace and organize the travel bureaus.

Transaction Processing System is one of the current systems in airlines companies to back up of dealing and analytical processing on freshly received operational information. This system includes beginning concentration, event derivation, and the ability to supply initial position or provinces of operational informations to applications, where later received events update these position.

Order Processing System is another system which is used in operational degree and keeps path of day-to-day orders and dealing.

Part3: Ethical issues

There is no uncertainty that with aid of Information Technology and Information Systems human activities will be done more efficient and effectual. However some concerns have been risen in use of IS/IT that may do them to be unethical.

3.1 Ethical issues in use of IT

One of the chief concerns about the information engineering is Internet. Internet has been changed the manner people used to populate. Nowadays people shop through cyberspace, purchase ticket online, communicate with friends, household, college in the other side of the word, and that means traditional concern such as travel agents have lost their clients to the new rival which called cyberspace.

The other point of view of utilizing cyberspace is internet offenses ( choping into informations, disproof of informations ) . Internet has broken all the boundaries of personal securities. That could be a immense injury for a organisation if their private informations be stolen.

3.2 Ethical issue in use of IS

Developments of information systems besides involve ethical considerations in how information is used.

As mentioned information systems provides information to directors in organisation to do program and determination. The inquiry is that “ Do directors do legal determinations? ”

On the other manus information systems are all about garnering information, analyzing informations. The ethical issue of this fact is that, are the information collected in ethical manner.

Geographic Information System is a good illustration for show the unethical facet of usage Information Systems.

American satellites orbit the Earth, scanning for assorted sorts of informations, which can so be used in a GIS. Analysis of ensuing informations Tells research workers a great trade about, for case, natural resources located in other states.

The job is that poorer states, without the fiscal resources to direct up their ain orbiters, claim that the U.S. is taking information from them without any sort of payment.


What is most concern in determination devising non merely is “ Is this a right determination ” but besides is “ Is this determination the best determination ” . Directors will ever necessitate to entree to the utile information in order to do the best determination.

An organisation should hold several types of information systems runing at the same clip. The success of an organisation which has information system in all the sections such as Finance and Accounting, Gross saless and Marketing, Manufacturing and Human resources section is guaranteed.

Here are two more information systems that I think will assist Emirates to hold better services:

In a company like Emirates which has 6 subordinates, Partner Relationship Management ( PRM ) is a system for bettering communicating between Emirates and their channel spouses.

Another recommended system for Emirates is Customer Relationship Management ( CRM ) to assist them remain near to bing clients. Skyward is the celebrated Customer relationship Management system for Emirates. Sing the strong competition in today ‘s market, they need to better their CRM public presentation in order to increase the figure of loyal clients.


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