Project Charter for implementation Enterprise Resource Planning System
Company Profile
Air Arabia started its operations in 2003 following a directive from His Highness Doctor Sheikh Sultan Bin Mohamed Al Qassimi (Air Arabia, 2013) . The firm later became a company limited by liability through incorporation. Air Arabia has two hubs with one of the hubs in its headquarters in Sharjah International Airport in the United Arab Emirates while the other hub is in Casablanca, Morocco (Air Arabia, 2013).The firm has more than 57 destinations specifically in Middle East, North Africa, Asia and Europe (Air Arabia, 2013)
Purpose Statement
Air Arabia intends to install an Integrated Enterprise Planning system to aid its strategic objectives (Air Arabia, 2013).
Scope Statement
The project scope covers the following: identity integrating database, instructors’ compensation, employees, finance, public relations management, and data warehousing (Gulf News, 2005).
Deliverables
Enterprise Resource planning envisions three major deliverables. The first deliverable is system implementation where it is expected that the system will be in place as expected. Two, corporate process enhancement in which the system’s functionality remains without destroying efficiency and control (AME Info, 2005). Lastly, Enterprise Resource Planning should aid transfer of knowledge to equip intended users with proper information and to aid the company become more self-reliant.
Goals and Objectives
The overall goal is the implementation of Enterprise Resource Planning system to meet the following objectives: improve the quality of Air Arabia online transactions, and human resource experience by way of self-service choices. Secondly, to design its corporate image for flight excellence and better passenger experience (Focus Soft Net, 2013).
The third objective is designing of corporate intelligent techniques for improved decision making while the fourth is to improve the company’s corporate processes and lastly, to bring down information technology expenses and other expenses as well
Stakeholders and Roles
Main stakeholders include the sponsor, implementation steering committee, budget review committee, project director and consultant team leads. The sponsor, being the champion of the project offers strategic path for the project, obtains finance approval for the project, monitors continued commitment and collaborates with the implementation committee to ensure timely decisions (Focus Soft Net, 2013).
The implementation steering committee works to design the overall objective of the project, review and pass the project charter, avail necessary resources and provide management assistance to the whole project team (Focus Soft Net, 2013).
The budget review committee will review the budget accordingly on aspects like expenses, costs and meet on a monthly basis to advise the implementation steering committee. The project director endeavors to coordinate the project activities, offer administrative support, design and execute master project plan, and liaise with external stakeholders. Lastly, the consultant team leads will participate in the project administration process, and provide support in designing of a project plan (Focus Soft Net, 2013).
Cost and Estimate Schedule
The project is estimated to take up to 4 million US dollars spread over six phases estimated to go for two years. This cost includes purchase of software, consultancy, training of staff and initial maintenance (Focus Soft Net, 2013).
Chain Of Command
The project sponsor is the head of the project the chain proceeds as follows: Implementation committee, project director, technical lead, project coordinator, project consultants and various teams within the company (Air Arabia, 2013).
Assumptions and Agreements
The project has various risk factors. Insufficient funding may stall the project while different stakeholders may fail to play their role effectively. In addition, the scope of the project may introduce new risk exposures (Focus Soft Net, 2013).
Communication Plan
Communication will mainly take the form of the project charter itself, communication from the sponsor and proceedings of project status meetings (Focus Soft Net, 2013).
Air Arabia is a cheap priced flight airline headquartered in Sharjah. The airline has been in existence since the year 2003. Currently, the airline serves more than 89 destinations in Asia, Africa, and Europe, enabling millions of passengers to enjoy its low-cost services. The airline offers relaxed, dependable and value for money travel services. With the purpose of making your cash more expedient and enhance its services, Air Arabia has introduced more offers for its customers. Presently, their clients are able to assess online bookings, city checks-ins, and shuttle bus services. Through this, Air Arabia has become the air carrier of preference to most clients. In this speech, I am going to focus on quality management of Air Arabia.
In the recent past, I have noted that there are a number of challenges faced by most airlines in meeting the terms set by the regulatory bodies. As such, a number of airlines do not possess the appropriate tools to have inclusive and feasible maintenance and quality plan. Air Arabia acknowledges that quality management of aviation is very vital in the industry. In this regard, the airliner has put in place measures to enhance its risk management, its internal control, and its compliance with the national and international regulatory bodies.
With respect to meeting the customer’s satisfaction, the airline has ensured that it surpasses the travellers’ expectations. Its services are readily available and cheaper compared to the competitors’ prices. Through this, travellers who could not afford or access airline travel services in the past can now enjoy the opportunities. Notably, the company has been able to gain a competitive advantage over its rivals without compromising on the required aviation safety and standards.
The momentous growth in the travellers’ records is proof that the airline is meeting its quality management strategies. Over the last two years, the airline has launched nine more destinations from its central hub in Sharjah. On the other hand, the company has increased the number of trips to existing destinations. Based on these illustrations, it is apparent that the airline is continuously improving year by year.
Out of the airline’s commitment to meeting quality assurance, it has been able to win a number of awards. The awards are Airbus Operational Excellence awards, Low-Cost Carrier of the Year by CAPA, and CAPA Award for Best Low Fare Airline. Similarly, in the year 2011, the company’s Information Technology department got an SO/IEC 20000-1: 2011 certificate. The credential was awarded in acknowledgement for the airlines hard work in putting into a practice world-class IT services. Based on the above-mentioned achievements, it is clear that Air Arabia’s is dedicated to instituting a culture of persistent development and learning in its Information Technology department. Additionally, the ISO certification illustrates the Air Arabia’s elevated levels of competence in service delivery and the capability to advance the delivery of IT services in accordance with the growth in the IT industry and the airline’s standards.
Similarly, the achievements I have mentioned above are robust springboards for the airline towards quality and innovation. The achievements show that the airlines have adequate controls and measures in position to offer regular cheap services.
As I conclude, I would like to applaud the company’s shareholders, management team, and employees in ensuring that Air Arabia’s quality management team meets its mandates.
The process of undertaking a study involves a lot of processes and thus it is imperative to conduct a study on the subject matter. In our case, the company we are dealing with is Air Arabia and the specific topic involves looking at staff rewards. In the methodology, we looked at how companies undertake reward schemes for their employees, and thus we have to collect data on the issue within Air Arabia. Air Arabia is a company that has one of the most qualified and competent staff within the airline industry and thus, the company has to maintain these employees.
The main issues that we examined in the process of undertaking the study on staff motivation were based on the best reward model, the purpose of rewards systems within the work environment, and ways in which reward systems assist in the purpose of achieving organizational goals. In the process of conducting this study, the best tools that we made use of include questionnaires and interviews. These data gathering tools were effective in the process of collecting data in a company that employs a lot of people.
The questionnaires were administered to different people working in different departments of the company. The questionnaires were administered to 200 different employees working for Air Arabia international. These questionnaires must meet reliability and validity tests that are supposed to ensure that the study meets the set-out criteria. For instance, in the process of undertaking this test we made sure that data is gathered from all employees working for Air Arabia International.
Once all these questionnaires were prepared, the major procedure that was supposed to follow was ensuring that all questions are answered. As a result, all the questionnaires were prepared and mailed out to all employees at an appropriate time since the process of administering questionnaires can be quite tedious. Moreover, the administration of questionnaires rarely needs the input of the administrator. The use of questionnaires in the process of data gathering had the following advantages:
It enabled us to collect a lot of information from a group of selected individuals at Air Arabia International within a short period of time.
Due to anonymity, questionnaires might reveal sensitive information from the respondents.
The data collected by the use of these questionnaires were specific to Islamic banking in Oman and the Middle East region.
The information gathered through the use of these questionnaires is reliable and valid since most of the questions were close-ended.
Questionnaires are simple to construct and at the same time easy to analyze.
Questionnaires are cheap and cost-effective to administer.
While the use of questionnaires was effective for this study of rewards effectiveness at Air Arabia International, the disadvantages of the use of questionnaires include:
Questionnaires are prone to misunderstanding if the respondents do not understand the questions asked.
In some cases, it might take a lot of time to analyze a large number of questionnaires if all respondents answer the questions differently.
It is difficult to gauge the honesty of the respondent in answering the questions.
In terms of the development of the questionnaire, the researcher has the input, and therefore, in this case, there is some imposition from the researcher’s side. Questions asked are based on the decisions and assumptions of the researcher even in instances where the researcher is not a professional on the subject topic.
In most cases, it is difficult to gauge how thought and work the researcher has put into working out the questionnaire.
While we made use of questionnaires in the process of conducting this study, it was also important to conduct interviews. As a result, several people were interviewed in this research and these people include experts in human resources and officials of Air Arabia. The interview focused on questions concerning employee motivation, rewards, and how to uplift the work rate for employees. In this research study, the use of interviews had the following advantages:
Interviews are easy to administer due to the structured questions.
Making use of interviews require a small representative sample to make conclusions.
Face to face interviews usually gives accurate and valid results with less ambiguity.
Clarifications can be easily sought in an interview.
However, despite the advantages of making use of interviews in the process of data collection, sometimes the use of interviews has its shortcomings. Some of the disadvantages of making use of interviews include:
Interviews are time-consuming.
Sometimes respondents are given a choice of choosing between alternative answers that the researcher has designed.
The questions to be asked in an interview have to be agreed upon beforehand.
It may be difficult to obtain answers at times if you find difficult respondents
No information might be forthcoming in some interviews due to the attitude, opinions, and values of the respondents.
The use of questionnaires and interviews were the main tools for gathering information concerning employee rewards systems within Air Arabia.
Data analysis
The process of undertaking data analysis involves separating data and making sure that all data correspond to certain set-out criteria. For instance, in the process of undertaking data analysis, it is important to do a correlation analysis whereby we analyze data and make sure that all answers meet the validity and reliability criteria. The process of data analysis was conducted through the use of SPSS and Microsoft Excel software due to the huge number of questionnaires and interviews handed out. As a result, it took a lot of time to ensure that all the queries raised were answered and dealt with within the appropriate time.
The process of data analysis will look into the answers and observations raised by employees as it concerns employee reward systems within Air Arabia. All answers that were similar were grouped together and data analysis looked into the tasks or answers that mirrored the sentiments of the employees.
In the process of making it easier for data analysis to be undertaken, we had to make use of close ended questions so as to easily analyze and group data. The major points that were worthy of analysis in undertaking this study were employee output, organizational goals all in connection with the reward scheme.
Results
Based on the results of the data analysis, the study achieved various results that shed more light on the employee reward scheme at Air Arabia. From the study, we noticed that many employees at the company agreed that the company’s rewards scheme has been in operation for a period of at least 5 years. Around 90% of the employees who were sampled in this study were in agreement with the company in the process of undertaking a reward system.
Many of these employees felt that the company should continue to undertake employee rewards schemes at all times. The results of the study also show that the company should not tie employee rewards schemes to performance. This is because most of the employees were of the sentiment that the company’s performance is not all the time influenced by work output. Moreover, most of them felt that at all times employees should be rewarded for their outstanding work for the company.
Out of the 200 sampled employees at the company, around 123 of them contended that employee rewards do not necessarily assist in reducing high staff turnover. This is because according to many organizations offer employee reward schemes and thus these rewards cannot help in averting high staff turnovers.
High staff turnover affects Air Arabia a lot since around 88% of the staff interviewed and questioned where the idea that this was one of the major factors affecting organizational performance. This is especially manifested during economic hardships and competition that affects major airlines globally since the industry relies heavily on the services of skilled employees. The best strategy for managing high staff turnover in the airline industry is to undertake a collective bargaining agreement with employees and unions that are in charge of employee welfare.
Moreover, the motivation of employees through employee rewards schemes makes employees try their best at undertaking their duties. Most of the employees that were rewarded under the employee scheme were motivated to work hard at their work stations.
Consequently, a large majority of those interviewed and sampled were in agreement that employee reward schemes influenced employee motivation. While some employees believed that employee rewards schemes influenced employee satisfaction. This is because employees felt that these rewards made them feel appreciated and thus they remained satisfied with their jobs.
Discussion
Air Arabia is a company that recognizes the talent and skills of its employees and thus it came up with an employee reward scheme. Research has shown that employee reward schemes have an important task of boosting the performance of employees. Therefore, in most organizations rewards schemes are not compulsory and it is important for organizations to come up with a policy that guides employee rewards.
One of the most common rewards schemes targets employees who have had long service for their companies. Other rewards schemes target noteworthy performance, peer recognition, or in some instances spot awards may be given to employees. Employee reward schemes are planned activities that are recognized as part of organizational policy and thus, several factors have to guide on how to undertake an employee reward scheme. Some of the commonly used factors are:
Organizational goals: In the process of undertaking an employee rewards scheme, we have to place the importance of rewards schemes in shaping organizational goals. Air Arabia did make a consideration that if an employee rewards scheme motivates and boosts the performance of employees then it should be implemented. This is because the organizational goals of any company are paramount in the implementation of any policy.
Program Objectives: An employee rewards scheme should be undertaken for a specific purpose and thus a company should consider the objective of such a program. For instance, at Air Arabia, employee rewards schemes are meant to motivate employees and thus this boosts employee output and service provision.
Eligibility criteria: All employee rewards schemes should have eligibility criteria so as not to leave any space for misinterpretation or misunderstanding. For instance, will rewards schemes be based on the performance of individual employees or departments?
Decision maker: Employee rewards schemes eligibility should be determined by a set group of people or individuals vested with these roles. Having a decision-maker makes it easy for decisions on reward schemes to seem easier.
Communication: Communication with the rewards scheme winners is important since it helps in motivating the winners and encouraging others to work hard for rewards in the future.
Timing: The question that most employees ask is if reward schemes should be tied to organizational performance. Therefore, an organization such as Air Arabia should consider the ideal time to hand out rewards to employees. Rewards should be undertaken frequently so as to keep the employees’ morale high at all crucial times.
Employee rewards schemes programs are designed in line with organizational culture and in the case of Air Arabia; it is specifically based on the organization. Air Arabia has designed an employee reward scheme that appreciates the talent and hard work of its employees in the organization. As a result, the company has programs such as free complimentary flights to family members of staff, paid-up holidays and long service awards.
Conclusion
Employee reward schemes are practices that have been tied with organizational goals so as to retain employees and reduced high staff turnover rates. This practice has been undertaken in various industries but especially in the service industry where employee skills play a big role in the achievement of organizational goals.
Air Arabia is a company that has been practicing employee rewards schemes so as to motivate employees to do their best at their workplace. In the process of understanding the rewards scheme undertaken by the airline, we had to conduct a study of the current employee reward scheme.
Most of the employees who were sampled in the study were in support of the company’s rewards scheme. Moreover, Air Arabia employees observed that employee rewards schemes do not necessarily assist in curbing high staff turnover. However, most of them agreed that employee rewards schemes did indeed assist in boosting employee morale and service output.
There are many ways of how a company may become more successful and recognizable in a particular market. It is crucial to pay much attention to strategic management, as a “set of managerial decisions and actions that determines the long-run performance of a corporation” (Wheelen and Hunger 5).
Therefore, a properly organized strategic case analysis organized by a sophisticated management consultant is an easy and effective way to define strong and weak sides of a company, evaluate possible threats and opportunities, consider political, economic, social, technological, and environmental issues, identify potential problems, and offer a good portion of the recommendations. The current paper introduces the example of the strategic analysis of a company from the United Arab Emirates, Air Arabia.
Description of the Organization
Air Arabia is an Arabic low-cost airline company established by Sultan bin Mohamed Al-Qasimi in 2003, with its headquarter in Sharjah, United Arab Emirates (Air Arabia: Press Dossier 4). Nowadays, about 2,500 people work at Air Arabia. The board is usually chosen for a period of three years.
Since 2003, Sheikh Abdullah Bin Mohammad Al Thani performs the function of the company’s chairman of the board. There are also several members, who perform significant functions in Air Arabia. They are Adel Abdullah Ali (the chief executive officer), Arif Naqvi (the non-executive director), and several independent members such as Ghanem Mohammed Al Hajri, Sheikh Mohammed Bin Abdullah Al Thani, Ali Al Midfa, etc. (Air Arabia Annual Report 3).
Adel is actually a person with a rich experience in strategic aviation, marketing, and tourism; he knows exactly what kind of work has to be developed within a company and what qualities of the employees are outstanding (Air Arabia: Press Dossier 10). Each employee has particular benefits for the company, therefore, they have a good stimulus to work better and maintain the rating of one of the most popular low-cost airline company in the region with assets of about $ (Arab Emirate) 10 billion.
Opportunities and Threats
The natural environment plays a crucial role in Air Arabia. In general, the transportation market depends considerably on climate change and weather conditions because many people decide whether to travel or not regarding temperature or even the possibility of rain during a flight.
Therefore, weather conditions turn out to be a significant threat to the company as it may lose a number of customers within a short period of time. At the same time, good weather conditions promote an opportunity for the company to find more potential customers.
The societal environment (PESTEL analysis) focuses on the combination of social, cultural, political, economic, technological, and legal factors, the evaluation of which help to comprehend the opportunities and threats of the company (Wheelen and Hunger 101). Air Arabia does not have a too long history, but it has already introduced itself as a powerful and profitable business with an ability to recognize the main factors that may predetermine the success in future.
The following PESTEL diagram will show how the combination of different factors helps to improve business and understand what kind of implementations are necessary for the company of a low-cost level that aim at providing services for people with various cultural backgrounds, financial incomes, and who live in different parts of the world.
All these factors prove that it is not an easy task to remain stable. Still, Air Arabia demonstrates good results in achieving its main purposes and continues offering low-cost services for the Arabians and for the tourists. For example, the political instability that is still inherent in a number of Arabic countries put the development of airline companies under threat.
The presence of serious conflicts with some European countries becomes a serious obstacle for Air Arabia. It becomes difficult to develop international relations and introduce itself as a safe and appropriate organization with a qualified team and good services.
Due to a considerably fast spread of the tourism industry within the UAE, it is a very risky still effective idea to offer not too high prices for flights regarding the quality of services provided. This is what makes Air Arabia noticeable in the transportation market.
As it is seen from the diagram below, jet fuel prices are not stable; they have been increased from year to year, and Air Arabia makes everything possible not to change the prices for their services.
Internal Analysis
Corporate structure
Air Arabia is a constantly developing company with its main focus on producing one type of services only. There are 44 aircrafts in service, and about 10 are ordered. Within a short period of time, the company has spread its services in several countries.
Nowadays, there three subsidiaries of the company: Air Arabia Egypt, Air Arabia Morocco, and Air Arabia Jordan: 5 Egyptian cities and 20 cities of Morocco use the services of the organization (Air Arabia Annual Report 1). The only disadvantage of its structure is an absence of unity on a personal level.
As a rule, powerful companies remind families according to their structure and relations. Air Arabia looks like a collection of independent departments that are able to produce high-quality services under the leadership of its director.
Corporate culture
The attention to culture and traditions is one of the main tasks Air Arabia sets. The UAE is the country with a powerful cultural background and the abilities to spread their interests through the whole world. This is why the concept of corporate culture for Air Arabia is powerful indeed.
All employees as well as its directors follow certain traditions, demonstrate the respect to the traditions of other cultures, still, never put their traditions at the first place and never neglect their rules. In other words, Air Arabia is one of the companies that tries to find out a kind of cultural consensus demonstrating a passionate loyalty to their traditions.
SWOT analysis
SWOT analysis promotes the identification of such issues like strengths, weaknesses, opportunities, and threats of the company (Wheelen and Hunger 176). Air Arabia is a perfect example of how to analyze its weak aspects and turn them into their strengths.
Being a significant part of the transportation market, Air Arabia demonstrates good results. For example, its paid-up capital is about AED 4,666,700,000 (GulfBase para. 2). Though there are not many working aircrafts in the company, its services are in demands due to the low-cost strategy chosen by its leaders.
The analysis shows that Air Arabia makes use of the economic growth of the country, a demographic mix inherent to the UAE, air travel demand, and tourist desire not to spend much money on traveling.
The following chart introduces the results of the SWOT analysis made upon the company underlying its strong and weak aspects as well as its threats and opportunities.
Task Environment
This type of framework will help to analyze the level of Air Arabia’s readiness for competitions that take place in the transportation industry. With the help of this analysis, it is seen whether the company is ready to create a solid competition with other companies within the same industry and what may become a serious challenge.
First, the entry of new companies in the same market is a serious threat to many organizations. In case of Air Arabia, the level of this threat is medium because of several facts:
Air Arabia may be also considered as a new company as its services and strategies are quite new for the sphere of aviation,
the company has a low-cost system that makes it noticeable among the other companies, and
the transportation industry is characterized by a very high barrier to entry.
This is why there is some threat of new entrants for Air Arabia, and the company should not neglect this possibility. Still, its already established position and low prices can hardly be surpassed by other new entrants within a short period of time.
Second, in spite of the fact that the airline industry is characterized by a high level of substitute services and products, a threat of substitutes is considered to be low for Air Arabia due to the location of the country and people’s choices of traveling to the UAE. Cars or trains may become successful alternatives for aircrafts.
However, such cheap and reliable services like those offered by Air Arabia can hardly be substituted soon. In addition, the UAE train industry, as well as car usage, is not highly developed due to the hot climate of the country. This is why it is evident that people can choose cheap but comfortable flights instead of dry travels by cars.
Third, the power of customers in the airline industry of the UAE is strong indeed. The Middle East is a region, where people are eager to wait but obtain their cheap services of high quality. Air Arabia is one of the companies that has already gained a successful brand and reputation. The only thing that Air Arabia should do is to remain the services at the same level and offer the same quality of services or even try to improve it regarding the current technological progress.
The next part of the analysis is the identification of the level of suppliers’ power within the company. It is expected to be high because Air Arabia depends a lot on the products and services delivered by different companies. The suppliers of Air Arabia have a possibility to influence its profits by changing the prices or the quality of the materials offered.
Air Arabia does not find it necessary to change the prices on their tickets because their cheapness is one of the most attractive for customers’ things. This is why, in case suppliers change and improve their conditions, Air Arabia has to change its own working conditions without changing the prices on services offered. This power is considered to be a serious threat to Air Arabia because it is wrong for suppliers to be more powerful than the company is.
In general, Air Arabia demonstrates a high level of rivalry among the existing organizations in the sphere of transportation. In fact, the competition between companies in this sphere is high indeed, and Air Arabia has all chances to take leading positions in the ratings of the Middle East and North Africa.
A low-cost price strategy is a winning decision that should not be changed. This is why Air Arabia has to think about the development of good business relations with suppliers to decrease the level of dependency.
Competitive Advantage
Competitive advantage is a combination of such concepts like company’s efficiency, quality, innovation, and customer responsiveness. It is usually organized on the results of the “Five-Forces” analysis and explains how successful the company works today. Efficiency is explained by the level of customer demand for Air Arabia services.
As a rule, customers are eager to choose Air Arabia among the rest airline companies due to its intentions to follow the European standards and set appropriate prices. It is proved by the profits of $425 million demonstrated by the company in 2013 (Air Arabia Annual Report 4). Even now, Air Arabia continues to be recognized as a high-quality service company on a local and international level.
Though the company does not make use of some innovative methods or technologies, its attention to the details that can make travel more comfortable remains to be crucial for its success. Finally, Air Arabia takes care of its customers and follows their responsiveness as well. Online services available for customers make it possible to choose and pay for Air Arabia’s services from any part of the world, where they are working.
Distinctive Competencies
With the help of a resource-based organizational analysis, the identification of distinctive competencies is possible. A distinctive competency is any high-level core competency of the company by means of which the company becomes noticeable (Wheelen and Hunger 138). The most famous and working distinctive competency of Air Arabia is its low-cost nature.
The company also becomes an example of how management development should take place. Properly organized business relations between the employees of the company and a certain identification of their rights and possibilities make Air Arabia able to compete with other organizations of the same industry.
Differentiation Strategy
A differentiation strategy is the company’s ability to create and offer unique products/services to customers and underline a number of features that are worth attention (Wheelen and Hunger 185). In other words, the presence of a differentiation strategy provides the company with a chance to be noticed and chosen by a variety of customers and makes the company competitive in a particular market.
Air Arabia’s differentiation strategy is cost-focused. During the last three years, this organization proves its ability to offer people low-cost services of a good quality. What the company offers is the possibility to “Pay Less. Fly More.” (Air Arabia: Press Dossier 3).
Strategic Alliances
An ability to arrange a strategic alliance is a proof that a company has already done something to be recognized as a powerful business body in the field and used as a solid strategic partner in order to achieve the required goals. For example, the current strategic alliance of Air Arabia is the agreement with Shurooq (the Sharjah Investment and Development Authority) to “promote Sharjah’s world-famous business projects and brands across the globe” (“Shurooq and Air Arabia” para. 1).
It is very important for the emirate to develop its social and economic relations, and its government truly believes that the cooperation with Air Arabia is a good way to continue its development.
Global Perspectives
The stakeholder analysis helps to realize that Air Arabia is the company that can easily go global in case the demands and expectations of all stakeholders are taken into consideration. For example, the primary stakeholders are those, who have a direct connection with Air Arabia. As a rule, they are buyers (who want to be sure in quality of services, safety of flights, and abilities to save their money) and employees (who want to be sure of their rights and abilities to be developed in regards to their professional qualities).
The secondary stakeholders are all those alliances and companies Air Arabia makes agreements with. As a rule, this type of stakeholders does not influence the economic responsibilities of the company, still it helps to improve the global perspective of Air Arabia.
Main and Potential Problems
Taking into consideration all those facts about Air Arabia that have been identified during the analysis, it is possible to underline its main and potential problems. For example, the evident low-cost focused business strategy does not hide the absence of an actual value of a company.
This is why it is very important for Air Arabia to think about some better services, fast innovations, and the usage of advanced technologies in order to prove that Air Arabia is not only an ability for people to save their money. The company should be introduced as a chance to enjoy a flight, get qualified services, and learn about the opportunities available for its customers.
The evaluation of customers’ reviews shows that there are many shortages the correction of which may considerably improve people’s opinions about the company. For example, many people underline that they, as airplane passengers, want to be provided with food during a flight. Another insignificant problem that may become a potential one is the absence of any entertainment.
Of course, people, who choose Air Arabia as the cheapest option for them to get the necessary destination point, usually expect a minimum of additional services. Still, it can be a pleasant surprise for Air Arabia’s customers to get more than they expect. In fact, the main problem of the company is its inability to improve their services.
Many customers’ reviews sound the same – the quality corresponds with the price set by Air Arabia. However, to become really the best representative of its kind on a global level, Air Arabia employees should think how to make its consumers to write the following – “the quality of services is higher than I expected” or “I really enjoy the flight and cannot even imagine that such services can be offered for such a low price”.
The potential problems may be considered on a global level as the company is not able to introduce itself as a constantly reliable airline service company. Due to a number of technical problems during the flights, not many customers want to choose the company without any doubts. This is why it is also necessary for Air Arabia to re-evaluate its agreements with suppliers and start focusing on a high quality of services for its customers.
Recommendations
Regarding the evident problems and shortages of Air Arabia, it is possible to recommend the company to focus on the diversity and quality of services offered to passengers. The company may try a new quality-based strategy with a few efforts to be spent. It is not necessary to begin the strategy with a number of financial demands.
The corrections can be made slowly in regards to the customers’ responses. For example, it is possible to re-organize the work of an onboard team and make the work more customer-centered. Air Arabia should focus on the passengers’ satisfaction and consider their human needs during flights.
Even if it is not provided for passengers to be fed during the flight, the company may offer pay food services instead. And these should be diverse ideas for people to be sure they can have a choice and the ability to consider their needs. This is why the main recommendation is based on the improvement of the quality of services and should result in customers’ 100%-satisfaction.
Another recommendation that can be given for Air Arabia is the attention to employees’ level of professionalism. The company should provide its workers with an ability to develop their skills and learn more about the differentiation of services offered. When a person knows how to satisfy a customer spending few efforts, it does not cost too much for a company.
This is why Air Arabia may also improve its services and get a chance to be properly recognized on a global level focusing on one of its primary stakeholders, its employees, and their professional skills. In general, Air Arabia has a number of opportunities to become better and impress its customers.
Air traveling should not be too expensive, and this company has already shown how it is possible. Of course, it is wrong for customers to expect too much from a company of a low-cost level. However, it is never too late for Air Arabia to use its brand, available advanced technological resources, and innovations and implement changes in regards to customers’ needs and expectations.
“Shurooq and Air Arabia Sign MoU to Promote Sharjah Globally.” WAM: Emirates News Agency. 2015. Web.
Wheelen, Thomas, L., and David Hunger. Strategic Management and Business Policy Globalization, Innovation and Sustainability. Upper Saddle River, NJ: Pearson Education, 2012. Print.
