Operation Strategy and Management

Current  Operation Strategy

Currently, the firm has established itself as a leader in the industry by developing its brand and securing customer satisfaction through impeccable service. Nevertheless, the company has reached a point where further growth can only be achieved by harnessing evolving technology and adopting strategic principles of management (Emirates, 2016). Since the firm already has a competitive advantage against local and international competitors, it needs to review its operational strategy to find out how it affects the performance of the firm.

Importance of the Problem for Organizations

The profit obtained by a businesses is contingent on its operational strategy. An effective strategy ensures that a company receives considerable amounts of revenue since it reduces the operational costs while concurrently ensuring that the quality of products and services is sustained (Gandellini, Pezzi, & Venanzi, 2013). Moreover, the operational strategy determines whether a firm will have an advantage over its competitors. Therefore, this organization will help the airline identify the principles of management that have positioned it as a global pioneer. The insight obtained from the study will assist the organization in restructuring and incorporating new elements in its operational strategy that will ensure the organization retains its competitive advantage.

Purpose of the study

The goal of the paper was to assess the impact of operational strategy and management of Emirates Airlines on the companys performance.

Study Objectives

• To understand the role of operational strategy in Emirates Airlines.
• To understand the role of management in Emirates Airlines.
• To evaluate the impact of operational strategy and management on the performance of Emirates Airlines.

Research Questions

1. How does operational strategy of Emirates Airlines affect performance?
2. How does management of Emirates Airlines affect performance?
3. How can the operational strategy of Emirates Airlines be improved to sustain its position as a global leader?

Brief Literature Review

The available literature suggests that the operational strategy of Emirates Airlines is very efficient. The company focuses on hiring the best talent during the recruitment process, developing the brand, investing in products and services, and attracting the best partners. This operational strategy has ensured the success of the firm.

Literature Review

Background of the Topic

Emirates has an operational strategy that focuses on attaining customer satisfaction. This strategy is achieved by continuously investing in novel product development and service improvement (Emirates, 2016). The airline carefully monitors the trends in the industry and listens to the customers in order to establish areas that require improvements. This strategy makes the company responsive to changing client needs. For instance, numerous clients today need Internet access even when on the planes to enable them to continue with their work, particularly during long flights. Emirates identified this need of its customers and restructured its service to incorporate connectivity on the aircraft. The company invested twenty-two million dollars in installing connectivity systems across its fleet, which is currently seventy percent Wi-Fi-enabled. In 2015, more than five million passengers could connect to Wi-Fi while on board and over four hundred thousand calls were made (Emirates, 2016).

The airline maintains its position as a global leader by being responsive, innovative, and inspiring. The reliable brand has aided the company in outperforming competitors in the industry when recruiting people and attracting investment. The qualified employees acquired by the corporation from diverse backgrounds are a primary reason that has allowed the firm to differentiate its products and services. Emirates Airlines is amongst the most recognizable brands in the world of sports, mainly because of investing in the portfolio of some of the most prominent clubs and sporting events, including football, cricket, golf, rugby, tennis, and Formula 1 (Emirates, 2016). Sport offers a platform for the company to attract a global audience. For instance, the company is the primary sponsor of the Arsenal football club that has millions of fans around the world. These fans are very loyal and support the businesses that sponsor their beloved football club. As a result, Emirates attracts a significant number of people globally through sports sponsorships that enable it to acquire a larger revenue.

Previous Research on the Topic

A past study by El Namaki titled Is this the right strategy investigated whether the strategies adopted by Emirates Airlines are appropriate. The study concluded that the strategies of attracting the best partners and developing the brand were particularly effective in giving the firm a competitive edge against local and international competitors. The research determined that the employees are the greatest asset of Emirates Airlines as they are the basis for attaining success. Since the company ensures that it obtains talented staff during the recruitment process, the employees are motivated to perform their duties well. Often, the company spends adequate resources in employee training initiatives that allow the employees to gain the necessary skills and knowledge required to thrive in the industry. For instance, the development team has in the past offered approximately four thousand four hundred training initiatives to twenty-five thousand employees via virtual classrooms (Emirates, 2016). The training sessions have enabled the completion of more than four hundred thousand on-line courses. The company has utilized advanced technology to offer its global workforce improved access to training facilities by using virtual training and cloud-computing systems.

Furthermore, the recruiting department has established partnerships with Emirates SkyCargo to attract, train, and develop UAE citizens to become competent in supply chain logistics. This strategy aimed at ensuring the people recruited into the company have adequate knowledge and skills will ensure the continuity of operations (Miller, 2014). By training graduates on how to handle specific business activities, the company spends less on training new employees, because they are already equipped with the knowledge required to handle their tasks. Additionally, the company experiences smooth continuity of operations when senior employees retire and new employees are hired.

Previous Research in UAE Context

The United Arab Emirates emergence as a leading international economic hub is a consequence of a multidimensional strategy of development that focuses on all aspects of development. Emirates Airlines has contributed to the success of the region by connecting it to the rest of the world. Emirates Airlines places a great emphasis on the development of workers and creating a positive environment that makes its employees happy. The firm is concerned with sustaining growth. It plays an important role in international economy because it receives increased revenue (Gandellini et al., 2013). Emirates Airlines is a perfect example of a firm that best portrays the principles of growth and innovation that are aligned with the UAE goals. A past study by El Namaki titled Is this the right strategy investigated whether the economic growth of the UAE was the primary factor for the success of Emirates Airlines. The study concluded that the economy of the UAE has had a huge impact on the success of the airline as it has attracted numerous foreign investors to the region. However, the study acknowledged that the economy of the region complemented the effective strategy of the firm.

Since the firm is owned by the government of Dubai, it has access to adequate financial resources that have allowed the company to continually invest in products and services. Moreover, the company does not face any restriction from the government, which has enabled it to utilize the cargo compartments to obtain more profits as it carries more goods as compared to other airlines. The strategy of diversification has permitted the region to overcome the effects of the international economic crisis.

Research Gap

Numerous studies on operational strategy and management of Emirates Airlines have been conducted in the past. These studies aimed to identify the strengths and weaknesses of the firm to help it restructure its services and products. Nevertheless, there were few studies that attempted to explain how operational strategy and management impacted the companys performance. Thus, this study will address this research gap and provide insight on the research topic.

Methodology

Quantitative Analysis

The study entailed a quantitative analysis as it involved the collection of primary data from the employees and management personnel. The data was subsequently analysed using descriptive analysis, which was provided under quantitative analysis. The study was carried out in the UAE since it is the major hub for Emirates Airlines. The study aimed to evaluate the impact of operational strategy and management on the companys performance.

Profile of the Respondents

The study population comprised of all the employees of the company in different departments and management personnel at various levels of the firm. Additionally, the population included analysts of the airline industry in the United Arab Emirates. The purpose of the management personnel in the population is to provide insight on the current operational strategy and the impact of the strategy on the performance of the organization. Furthermore, the management officials provided information on the current trends and mechanisms that are in place to ensure that the operational strategy adopted by the firm helps it sustain its position as a global leader. The employees in the population provided insight into the effectiveness of the operational strategy adopted by the management. Moreover, they provided information indicating the challenges they encounter and supplied recommendations on what could be improved by the management.

Sampling Method and Sample Size

Purposive sampling was used to select Emirates Airlines, because the study focused on identifying the effect of operational strategy and management on the performance of the firm. Once the organization was chosen, random sampling was used to select employees and the management personnel who would participate in the study. Random sampling was used since it permited an equal and independent chance for every member of the population to be involved in the study. Therefore, it significantly reduces any chance of bias that may compromise the validity of the study. Random sampling helped select fifty employees and twenty management personnel. Thus, the total sample for the study was seventy respondents.

Questionnaire Development

Frequently, surveys collect data with the help of questionnaires and interviews. This research mainly employed the use of questionnaires to acquire information. A questionnaire was designed to gather data from all participants in the study. The questionnaire included open and closed queries. The open questions enabled the researcher to attain comprehensive information on the operational strategy and management of the company. The entries in the questionnaire addressed all the objectives of the research. The questionnaires were distributed among the respondents and collected at a later date to allow the respondents ample time to give their answers.

Data Validity

Validity in this context denotes the extent to which the data collected portrays the precise scenario evident in the firm. Validity was enforced by reducing errors in the course of data collection. A pilot study was carried out before the main study to establish the flaws in the research instruments. The pilot study identified the weakness in the research tools which allowed adjustments to be made. Changes were then made where needed before the research was conducted.\

Results

Fifty-two point nine percent of the interviewees were male and forty-seven point one percent of the interviewees were female.

Twenty-eight percent of the interviewees had a college education, forty-two point nine percent of the interviewees were graduates, and twenty-eight percent of the interviewees were post graduates. The post graduates mainly comprised of the management officials, whereas the college and university graduates mostly comprised of the employees in various departments.