The government in partnership with the Knock Airport has embarked on a promotion program that aims at improving tourist activities in the region. The program seeks to popularize the area as well as promoting new routes that provide air access to the region. This paper will be looking at the social economic implications on the region as the tourism activities continue to stabilize. What are the main resulting effects of the success of this initiative? The paper also seeks to identify the major roles of this advertisement. Who is the target market? How does the initiative help the market and the region as a whole? This paper will outline the effects of this initiative on the locals in terms of job opportunities. The paper will outline the estimated market size that the initiative seeks to add on its already existing one in terms of targeted population.
Introduction
Recently, the government embarked on a program dubbed ‘Promote Ireland’ to encourage tourism in the country through the ministry of tourism and sports. The government and the industry players acknowledge the role played by marketing. This has driven them to create awareness through the available platforms including the social media. This paper seeks to discuss the importance of regional airports in social and economic expansion in Ireland.
Purpose of this airports market initiative
The campaign is meant to promote tourism in the region (Grace, 2014). This advert is a joint marketing strategy backed by the airport and the tourism ministry. The campaign is geared towards promoting new routes from Glasgow international to Ireland. The participation of the low fares airline has also helped in achieving this goal (Grace, 2014). The initiative is driven by the need to expose tourists’ attraction sites in the region and to enhance access to the beautiful sceneries.
The effects on the intended target segment
The target markets in this advertisement include business people and visiting friends and family, VFR. There is a growing demand for commercial flights in the region and the knock airport is depending on this gap to make the route a success. The campaign is also seeking to promote new air ways provided by the airport through the direct flights from Benelux (Grace, 2014). The market consists of 20 million people and this is a viable niche to guarantee tourism growth in Ireland (Grace, 2014).
Effects on the local community and aviation interest groups
The locals will greatly benefit from this initiative in several ways. First of all, there is an inevitable growth in the rate of employment in the region as a result of tourism activities. In addition, the region will also experience infrastructural growth. The hospitality industry is likely to set up accommodation facilities around the region (Williams & Bråthen, 2012). As tourists visit the country, the cultural setting is likely to experience some changes as cultures from other parts are introduced to the locals. There is possibility of cultural changes as new cultures are introduced by the visitors (Williams & Bråthen, 2012).
Conclusion
This essay has discussed the initiative launched by the Ireland government and the Ireland West Airport to support the tourism industry. The paper has outlined the major target market and the impact of this initiative to the social economic development in the region. The positive and negative implications of this initiative have clearly been discussed in the last paragraph of this essay.
References
Grace, S. (2014). Minister Michael Ring Lends a Hand to Boost Tourism from the Netherlands. Web.
Williams, G., & Bråthen, S. (2012). Air Transport Provision in Remoter Regions. Farnham, UK: Ashgate Publishing
While the areas of income based on traditional aerial activities are fixed for all of the airports around the world, the employment of non-aeronautical sources of revenue allows the authorities of the airports to demonstrate creativity concerning fields of investment. This way, the targeted groups of consumers now include individuals beyond passengers. As a result, the number of branches of income increases and provides the airports with more funds. Therefore, airports become highly profitable facilities with the reduced dependence on aerial revenues and lower risk of bankruptcy. Nowadays, the most advanced airports manage to obtain close to half of their total revenue from non-aeronautical spheres (2013 ACI-NA Concessions Benchmarking Survey Results for CY2012, 2013). The main streams of non-aeronautical incomes at the contemporary airports come from such services as parking, ground transportations and car rent, restaurant and hotel business, duty free and retail, and a number of other services (2013 ACI-NA Concessions Benchmarking Survey Results for CY2012, 2013). For example, airports may build gold courts or concert halls on their land. To promote their services in the contemporary highly technological and connected world airports start to launch their own websites, forums, and mobile applications, which make the facilities easier to locate and navigate for the customers. Airports constantly communicate with their customers and collect data concerning client satisfaction and service performance, conducting surveys and addressing existing issues.
Hong Kong International Airport
When it comes to the determinants responsible for the revenues coming from non-aerial spheres, there are three main factors that impact them. They are the size of the facility and its land, the kinds of passengers that use the services of the airport, and the inside planning of the airport in relation to the placement of stores and cafes (Chawla, 2014). Hong Kong International Airport’s authorities are focused on the increase of its revenues based on a variety of services. For example, in the video it is said that the airport offers the best delicacies from all around the world and the latest technological products, which means that the leaders of the airport constantly improve its retail and food and beverage spheres of income to attract more buyers (Hong Kong International Airport Master Pan 2030, 2011). Besides, this airport is international, which means that it attracts large number of passengers; and vacation travelers and tourists are known to be better spenders (Chawla, 2014).
Conclusion
The majority of advanced international airports all around the world are expanding the numbers of their sources of income by means of introducing additional services that target customers beyond passengers. Hong Kong International Airport has a plan to expand its aerial streams of income, while its non-aerial revenues will remain focused on the needs of passengers only.
This article throws light on the redevelopment of Airport West, which is one of Melbourne suburbs. In particular, the author examines the interests of different stakeholders who may be affected by new construction projects. Much attention should be paid to proposed residential zones that can dramatically change the landscape of this area. In turn, these changes are not accepted by many residents who believe that these new initiatives can destroy the original landscape. This is one of the main pitfalls that they want to avoid.
Moreover, many residents believe that the government should impose some restrictions on new construction projects. In particular, they believe that it is important to limit the height of the new buildings. In contrast, the public administrators also want to consider the interests of developers since these companies cannot readily accept the restrictions on the height of buildings. These are the main details that can be identified because they are important for understanding the nature of this conflict and the arguments of different sides.
The interests and perceptions of different groups
Overall, it is possible to distinguish two major groups. First, one should speak about the residents. These stakeholders perceive themselves as people who will be directly affected by the construction of new residential zones. Yet, one should keep in mind that the interests of residents are expressed primarily by people who form the so-called Airport West Action Group. This article does not fully illustrate the experiences of residents. One should also mention that new developmental projects may potentially force many people to relocate.
Moreover, the construction of large blocks can decrease the price of housing in the district. Therefore, their self-interests of residents can be threatened by this project. These concerns may be useful for explaining the responses of these people who do not readily accept new developmental initiatives.
In turn, the representatives of the action group play a more complex group. These people perceive themselves as mediators who need to interact with the residents and public administrators. To a great extent, they strive to help residents and policy-makers reach a compromise. They do not describe themselves as the opponents of changes such as the construction of new residential zones. They do not deny the idea that such changes can be critical for the improvement of living conditions.
Nevertheless, at the same time, they do not want the original core of Airport West to be destroyed. This is one of the reasons why these people want weatherboard houses to be preserved. Overall, these people believe that they are trying to bring positive changes into the life of Airport West and protect the interests of residents at the same time. The representatives of this group want to demonstrate their efficiency, especially the ability to resolve disagreements. These are the main points that can be made.
On the whole, this article demonstrates that new developmental projects can give rise to numerous debates. The examples provided in this paper show the government and the community cannot easily resolve their disagreements. In turn, the action group discussed in the paper can be regarded as the mediator. Such situations are quite common at the time when developers intend to construct a new residential zone in any urban area. Under such circumstances, it is vital to find a solution that can be accepted by the opposing sides, such as residents and developers. These are the main arguments that can be put forward.
The focus of this paper is on the Dubai based organization known as the Dubai Airport Free Zone (DAFZ). The organization was established in 1996 as a government’s strategy of making the United Arab Emirates a global business hub driven by foreign investors as well as local investors. The aim of the paper is to analyze the business models applied by the organization. The paper will entail the explanation of the models, their critical analysis, and a conclusion. The business models applied by the organization are the differentiation of products, positioning, and Total Quality Management (TQM). As a result of its robust success in the application of these models, the organization has received various awards from various bodies and organizations such as the international organization for standardization (ISO).
Business Models
A business model can be defined as a range of processes, procedures, and activities that are undertaken by an organization to enable it to establish a commercial opportunity. Generally speaking, business models comprise the strategy applied by a company to achieve its broad and specific objectives. It also comprises the planning and utilization of the available resources in an efficient and effective manner.
The business model of an organization is majorly informed by its structure and culture. The manner in which an organization is structured may determine the extent to which it achieves its objectives. The Culture of an organization, on the other hand, has to do with the social relationship within an organisation and the norms of the work place. As mentioned in the introduction, the business models used by DAFZ are differentiation, positioning as well as TQM.
Differentiation and positioning
In business strategy, differentiation is the process of distinguishing a product or service from the rest through describing its unique differences and or characteristics. It is done for competition purposes with a view of creating a market niche for that particular product or service. Differentiation seeks to create a good image about a particular product among the targeted consumers so as to ensure that they perceive it as unique and different from other similar products (Armstrong & Kotler, 2009).
Product differentiation makes the targeted consumers not compare a particular product with others; which gives that particular product a competitive advantage over the others. In doing differentiation, companies or product owners may rely on advertisement, promotions, improved product quality, lowering or increasing the prices as well as the lack of understanding on the part of the consumers regarding the price and quality of the product being differentiated (Armstrong & Kotler, 2009).
A company may engage itself in differentiation of several products at the same time. Doing this makes it have a certain number of customers for a product or service, a concept called positioning. Positioning entails using various strategies like promotion, distribution of products or services and production of unique products with unique pricing to build an identity of a particular company or organisation in the minds of consumers.
Positioning seeks to stabilize and retain the positions of the differentiated products so as to retain the competitive advantage of the company in regard to those products. For a company to create and maintain a particular position in a market, it needs to do a thorough research and consistent monitoring of market trends so as to modify or readjust the differentiation and positioning strategies for its products.
TQM is a business strategy employed by companies or profit making organisations to increase customer satisfaction as well as improve their internal processes (McNamara, 2011). The focus on quality is seen by many managers as a key success factor as well as a competitive strategy given that many customers are attracted by the quality of goods and services offered by a business. What this means is that if the quality is poor, then chances are that customers may lose interest but when the quality is good, then customers show great interest in the products and services. According to Mejía & Velasco, TQM comprises nine good practices and they include good and committed leadership, excellent product design, strategic planning, process management, customer involvement, employee involvement, dissemination of information and feedback, training and the management of supply quality (Mejía & Velasco, 2012).
Critical Analysis
The organisation DAFZ is strategically located proximal to the Dubai international airport, which provides access to more than 200 destinations across the globe, which makes it easy for investors to move to and from the zone without much difficulty. It also makes it easy for them to locate the zone. It is also located proximal to excellent cargo handling facilities and government facilities such as customs and immigration offices as well as the chambers of commerce.
In order to attract investors, the organisation provides some incentives such as 100% tax exemption as well as 100% foreign ownership. The tax exemption is aimed at ensuring that investors maximize on their profits. It also ensures that the process of business establishment is freed from the red tape which delays business establishment. The 100% foreign ownership ensures that organisations are free to employ the staff of their choice. It also ensures that companies are free to choose their shareholders, which also speeds up the process of business establishment because the investors do not need to go through rigorous audits of ascertaining employees’ and shareholders’countries of origin (International business publication, 2012).
The organisation also has in place a wide range of good practices such as customer satisfaction, care for the employees, team work, creativity and innovativeness, observation of business ethics and corporate social responsibility. It is a member of various quality focused bodies such as the Dubai quality group, the Emirates group and the European Foundation for Quality Management. Other good practices include ensuring a hazard free working environment for its employees, promotion of green and healthy environment, preservation of natural resources, employee training and development and prevention of pollution of the environment.
Due to its strategic location, the DAFZ currently hosts more than 1600 companies from various parts of the globe. The organisation has also received various awards from various organisations. In 2012, it received the top economic free zone award from the magazine called the financial times. In the same year, it received an award from Richard Goodman from the United States for strategic planning.
The organisation also received the Middle East Logistics Award (MELA) for three consecutive years from 2006 to 2008. It also received various other awards such as the Dubai Human Development Award and various fire awards. It is also an ISO certified in various fields such as energy management systems, information technology management, customer complains handling and occupational health and safety.
These ISO certifications and awards are a pointer of an excellent performance of the organisation. It has managed to establish a market niche for itself. The leaders of the organisation are committed to a course of maintaining the unrivaled competition in the region. They also aspire to make the organisation more customer oriented by focusing on finding better ways of improving customer satisfaction (Oxford Business Group, 2010).
Conclusion
The paper was about the Dubai based company called Dubai Airport Free Zone. The organisation uses two business models namely differentiation and positioning and TQM. Its proximity to the Dubai international airport makes it easily accessible to foreign investors. It has a variety of good practices such as customer care, care of the environment and quality improvement. Through differentiation and positioning, it has managed to become a preferred business hub by more than 1600 companies from across the globe. Most of these companies are attracted by the business incentives such as 100% tax waiver and 100% foreign ownership and employment. As a result of its excellent performance, it has received various awards from various organisations across the globe.
For instance, it received the Middle East Logistics Award for three consecutive years from 2006 to 2008. It is also an ISO certified in various fields such as safety, information technology, energy management and environmental conservation. It is also a member of various quality management bodies such as the Dubai quality group, the emirates group and the European Foundation for Quality Management. Despite the progress made by the organisation, it is still being built. The leaders are planning to launch a comprehensive blue print for the organisation which will not only strengthen its position as a global business hub but also make it a preferred destination not only for business people but also for merry makers.
International Business Publication. (2012). United Arab Emirates Business Law Handbook Strategic Information and Laws. New York, NY: Intl Business Pubns.
Mejía, G & Velasco, N. (2012). Production systems and supply chain management in emerging countries: best practices : selected papers from the International Conference on Production Research (ICPR). London: Springer.
Orlando international airport is expected to serve more passengers than it is currently serving. This means that they need to maintain a constant update in technology advancements in order to improve human congestion within airport and air traffic control capabilities to decrease possible aircraft tragedy. Introducing new technology that is up-to-date and sufficient can relieve many human errors. This will also help in improving communications system, which is the largest part and keeps an airport running smoothly and efficiently.
The new technology will lead to improvement of ticketing, whereby passengers can book for their tickets from their homes, offices and any other place connected with the internet. This means that passengers can download them using Smartphone while others can buy at kiosks which may be located centrally for all airlines of Orlando international airport. This will reduce the currently experienced queuing system to the ticket counters.
This new technology will improves terminals, which will help in controlling and coordinating ticketing and baggage checking. This new computer system will also improve communication within the airport plus the security among the airlines. The new system would help redefine airport navigation through automated and route air traffic control. Messages would be delivered via computer technology to the pilot of an aircraft that would give him a more direct route to his location and would thus decrease the risk of running low on fuel during a flight. The presence of human control would still be needed in order to handle incoming transmissions pertaining to route changes, exceptions and emergencies. Overall, the new system would be able to map out the navigational route of aircrafts in order to maintain steady air traffic control and shorter destination routes with less air traffic congestion.
It is not necessary for a pilot to use two-way radio communication since a ground control base does not monitor air traffic. This means that it is possible that some pilots will fail to communicate this important information. It should be of a top priority for Orlando international airport to make it a requirement that any aircraft should transmit their flight schedule and route on the suggested broadcast frequency in order to decrease the chances of any in air collisions. This would also make it possible to know a pilot’s coordinates in the event of an emergency.
A digital data link would allow Orlando international airport to keep a direct line open to all aircraft pilots in order to give them general information such as weather conditions, air traffic status, and any other general information of interest. However, a private line would be available for Orlando international airport to contact a particular aircraft with a message that is meant for that aircraft and no other regarding any error messages or circumstances that aircraft might be experiencing. This technological advancement will be just as important as the presence of human command.
Another reason that makes the digital communication to be beneficial is that it increases the speed and volume at which data can be sent and received. If air traffic continues to increase over time, this increased speed and volume will decrease the possibility of air traffic collision. However, if an increase in digital data leads to an increase in air traffic, this may also mean that navigation and landing technology would have to be increased in order to accommodate the increased number of airport landings and takeoffs.
Reference
Powers, S., (2011). Changes on the way for OIA? ‘Airport of the future’ hits snag. Orlando Sentinel. Web.
Dubai World Central’s Al Maktoum International Airport is a major air transport facility in Dubai, United Arab Emirates. The airport is relatively new, having been commissioned in October 2013. In this paper, the author is will critically review this important fixture of global trade in Dubai. Among others, the mission statement and strengths of the organization will be analyzed in this essay. The author of this paper holds that the airport is crucial to the region’s participation in international trade.
Mission and SWOT Analysis of Al Maktoum International Airport
A Review of Al Maktoum’s Mission Statement
The mission of this organization is to be a major player in the future development of Dubai. It intends to achieve this role by becoming a hub of international commerce (Sinclair par. 4). The company’s mission statement is in line with Dubai Airports’ objective of creating world-leading air transport facilities. The aim of such developments is to enhance the prosperity of this region.
Dubai World Central aims at becoming the focal point of aviation and logistics in Dubai. In addition, the airport seeks to serve the wider Arab world, including the entire Middle East, Africa, the Indian sub-continent, and the Commonwealth of Independent States (Hypanchal par. 2).
SWOT Analysis
Strengths
Al Maktoum International Airport exhibits several internal strengths. Such attributes have influenced the success of the company in spite of the fact that it is a young business organization. Chief among the strengths of this company is the strategic location of the airport. As a country, Dubai is strategically located in the world’s geographical outlay. Consequently, the location of Al Maktoum Airport in relation to its operations falls within a competitively strategic location. Dubai is a critical connection point between the West and the East (Dubai World Central par. 3). The strategic location is significant given that a lot of international trade is conducted through Dubai. The location is especially important to the emerging economies of the Middle East, South Asia, and North Africa.
Al Maktoum has some of the best airport fixtures and facilities in the world. The complete first phase of the facility has the capacity to handle 600,000 tons of goods per annum. It has a 4.5 km runway that can accommodate the latest model of A380 aircraft. It also operates 24 hours a day (Dubai World Central par. 6). In addition, the airport has state-of-the-art communication towers. The management has also made arrangements for line maintenance services. It has fully equipped fire stations and other ultra-modern airport facilities.
The airport provides passengers with more schedules and route choices than other facilities in the region and in the world. Such services make it the favorite of international passengers. In addition, the customers are provided with complete travel package services. The combination of facilities, location, and quality of services gives the airport an unprecedented competitive edge over regional and global air transport facilities.
Weaknesses
Al Maktoum International Airport operates in a cross-board domestic and international market. To this end, the company is competing with other world leading global airlines, as well as with small local operators. Lack of clarity in the company’s strategic direction may seriously dilute its various capabilities. It may also result in brand confusion given the many firms operating in this market (Afshin 106). The weakness is, however, addressed by the carefully designed and future-oriented master plan put in place by the airport. The master plan is part of the overarching framework for Dubai’s economic future.
Opportunities
The opportunities associated with Al Maktoum International Airport are immense. The airline industry is growing rapidly in Dubai, especially considering the strategic location of the country as earlier indicated. The number of visitors in the region is increasing. The rise in the number of travelers passing through the city is associated with the central location of this country. It is estimated that more than 50% of people in the world live “within eight-hour flight of the country” (Dubai World Central 5).
Nataraja and Al-Ali (474) postulate that Dubai hosts almost six million frequent-flyer customers. It also operates the ten longest non-stop flights in the world. Al Maktoum International Airport is making plans to exploit this massive market. According to Ahrens (576), the government of Dubai operates an excellence program initiated in 1997. The program aims at promoting performance in governance and trade in the region. Al Maktoum International Airport can take advantage of this government intervention to enhance its services and foster future growth.
The global business demands are constantly increasing. For example, the demand for speedy delivery of products and services is on the rise. There is also increased connectivity in the world today. Consequently, the demand for airports and airline services has increased tremendously. An estimated 35% of global trade value is dependent on air transport (Ahrens 580). Such views are an indication of the high demand for air transport, an opportunity that can be exploited by Al Maktoum (Dubai World Central 5).
Threats
Despite the many opportunities that can benefit Al Maktoum International Airport, the organization faces some threats from the external environment. For instance, bus and train companies are increasingly improving speeds and the quality of services in relation to long and short distance routes (Hypanchal 12). As a result, these sectors are drawing customers from the air transport industry. The improved rail and road transport is providing the customers with alternative forms of transport.
Increasing costs of air transport constitutes another major threat to Al Maktoum’s operations. Airline charges are influenced by the high operating costs brought about by the rise in fuel prices, airplanes, and airport maintenance charges (Spong 16). As a result of this rise, customers are likely to opt for other relatively cheaper and more convenient forms of transport.
According to Rugh (23), global airlines are constantly monitoring the progress made by Emirates and Dubai Airport and Civil Aviation Authorities. The concerns of these airlines are associated with unfair competition from Dubai airports and airlines. The reason is that the government owns some of these airports and airlines. Such businesses can access subsidized services from the government, leading to unfair competition. Such claims of unfairness might discourage international airlines from investing in Al Maktoum International Airport, negatively affecting business for the company. Most international airlines are reluctant to invest in government-controlled airports (Ahrens 588).
Other problems facing this air transport company include fierce competition and economic recession (Guy and Savoie16). The factors constitute some of the determinants of future success in the aviation industry. Failure to take into consideration these external environmental factors may lead to failure of a company operating in the industry. Al Maktoum airport should be aware of these threats and deal with them appropriately.
Operations Management Decisions at Al Maktoum International Airport
Overview
Operations management at Al Maktoum International Airport is a major undertaking. The airport is operating at an unprecedented scale compared to other facilities in the world. The following constitute some of the operations management decision aspects in relation to Al Maktoum International Airport:
Location Strategy
As mentioned earlier, Al Maktoum International Airport is strategically located. Dubai is a major trading location in the Middle East, and especially within the United Arab Emirates. One of the major apparent factors in relation to operations management at Al Maktoum International Airport is the location of the facility, which was a major consideration when plans to establish the facility were made. The airport is a major aspect of aviation in the Middle East and neighboring regions.
The airport enjoys many advantages in terms of operations. For instance, the facility is connected to the largest container port between Rotterdam and Singapore (Jebel Ali Port). The port is seamlessly linked to Al Maktoum International Airport through the Dubai Logistics Corridor (Hypanchal 4). The connection constitutes a unified custom-bonded zone. It leads to reduced ground time and enhanced flow of cargo (Dubai World Central 6). In addition, Dubai World Central is a multiple logistics platform. Major trans-emirate roads are easily accessed from the airport. As such, one can argue that the location of the airport leads to increased connectivity, efficiency, and speed.
According to Dubai World Central (par. 5), leading players in the logistics business are already exploiting the strategic location of the airport. Such businesses include Panalpina, Aramex, and Kuehne Nagel. As a result, Dubai, a leading tourism destination in the Middle East, is the right location for an airport.
Process Capacity at Al Maktoum
Process capacity is a very important factor in operations management of any given business organization. It entails the throughput of the organization (Raynor 9). It is the number of units a given facility can produce and hold within specified durations of time.
Process capacity in relation to Al Maktoum International Airport entails the volume of passengers, airplanes, and cargo that can be handled by the facility. Hence, the capacity of the airport is a major determinant of its operations management. One of the driving factors behind the development of Al Maktoum International Airport is the growth of Dubai as a hub of international trade and a major tourist destination in the region. The growth led to increased volumes of cargo and passengers. Airliners came in to cater for this growth. Al Maktoum is designed to meet the outstanding requirements and projected needs of the aviation industry in this market. According to Sinclair (par. 2), Al Maktoum can cater for up to 7 million passengers annually. The airport complex provides the clients with catering services given the number of food outlets in the facility. Such provisions increase the airport’s process capacity.
Forecasting at Al Maktoum
According to Sinclair (par. 3), forecasting entails the prediction of future events or needs of a business. It is a vital component of operations management. It influences the production capacity of a business, personnel, and facility requirements. One of the objectives of Al Maktoum airport is to foster economic growth in Dubai. The organization targets the larger Dubai market. Its focus is not restricted to the aviation industry (Dubai World Central 6). Operations management at Al Maktoum International Airport takes into consideration these future requirements, especially in relation to the capacity of the facility. For instance, when completed, the capacity of the airport complex will increase to160 million passengers. It is also projected to handle 12 million tons of cargo per annum (Dubai World Central 5).
Al Maktoum International Airport is an important component of Dubai World Central broader economic hub. The hub incorporates a highly developed aviation district and a number of educational institutions. It also includes a number of aviation-related businesses and other facilities. In the recent past, international aviation services have increased rapidly in the region. The growth has made the region the center of this global industry.
Such airlines as Qatar, Emirates, and Etihad are shaping the global aviation industry. The success of these companies has attracted global investors to the region. As mentioned earlier, Dubai is a critical location to many emerging economies. Such economies include the Middle East and South Asia. Consequently, the operational and capacity projections of Al Maktoum International Airport aim at exploiting this rapidly growing market.
Design of Goods and Services
Every business organization strives to align the design of its goods and services to the needs of the customers (Raynor 8). The aviation industry is no exception. Customers in this industry exhibit a wide range of needs and wants. Airports, airlines, and other stakeholders strive to meet these needs. An analysis of the capacity of Al Maktoum International Airport reveals that the organization has aligned its services to the requirements of the regional aviation industry. In addition, Al Maktoum’s major objective is to develop the largest airport facility in the world (Bemadette 10). The objective is designed to meet the rising demand for aviation services in the Arab world.
The airport is aiming at accommodating the tremendous growth in the number of passengers in the Middle East. It also aspires to address the need for speedy cargo delivery in the world. The continued economic and social growth in Dubai constitutes an economic need that the airport seeks to meet. The country’s economic growth revolves around commerce, tourism, transport, and communication. Al Maktoum is designed to meet these present and future needs in the industry.
Operations Quality and Reduced Costs
Enhancing the quality of a given business process can substantially reduce the cost of business operations. Reduction of the cost is achieved in various ways. For instance, improving the quality of operations enhances efficiency of the various processes. The improvements translate to reduced wastes and elimination of production of substandard goods and services (Akao 20; Oakland 532).
By improving the quality of operations, Al Maktoum can reduce operating costs. For instance, the facility can provide more space for passenger and cargo freights. Such provisions may increase customer satisfaction, attracting more business in the long run. In addition, the costs of maintaining the airport would be catered for by the booming business.
Structural Effects in Supply Chain Management and Technological Innovation
Supply chain management entails the process of handling the flow of goods or delivery of services (Mentzer 3). On the other hand, technological innovation focuses on the development of new (or enhancement of already existing) technologies (Raynor 7). The supply chain and technological aspects of an organization may be affected by the structure of organizational operations (Daekwan, Cavusgil and Calantone 52). For instance, Al Maktoum possesses state-of-the-art equipment. As a result, the effective operation of the airport complex relies on regular updating of the equipment to reflect technological changes in the industry.
Works Cited
Afshin, Molavi. “Dubai Rising.” Brown Journal of World Affairs 12.1 (2005): 103-110. Print.
Ahrens, Thomas. “Assembling the Dubai Government Excellence Program: A Motivational Approach to Improving Public Service Governance in a Monarchical Context.” International Journal of Public Sector Management 26.7 (2013): 576-592. Print.
Akao, Yoji. Quality Function Deployment: Integrating Customer Requirement into Production Design, Cambridge, MA: Productivity Press, 2010. Print.
Daekwan, Kim, Tamer Cavusgil and Roger Calantone. “Supply Chain Strategy for Nascent Firms in Emerging Technology Markets.” Journal of the Academy of Marketing Science 34.1 (2006): 40-54. Print.
Dubai World Central 2012, Al Maktoum International Airport. Web.
Guy, Peters, and D. Savoie. Governance in a Changing Environment, Montreal: McGill-Queens University Press, 1995. Print.
Chicago O’Hare International Airport is one of the leading international airports in the world. In 2001, a review by the management of this airport, in conjunction with FAA, established that cases of delays were increasingly becoming common at this airport. The management noted that the problem started over 30 years ago when the facility started receiving more visitors than it had been designed for, and this was causing a major concern (Burghouwt 45).
The airport had to remain efficient in its operations in the market in order to remain competitive. Market competition was getting stiff with the emergence of other international airports in the country. The city of Chicago realized that they had to restructure the O’Hare International Airport not only to maintain a stream of revenues from this airport but also to enhance ease of movement to and from this city as a way of boosting trade and tourism.
In 2004, the city developed a Master Plan that was meant to help restructure the systems at this firm. In this plan, which was structured in February of 2004, the management of this airport drafted changes that were needed in order to expand the capacity of the airport to meet the expanding demands.
The master plan explained in detail the issues to do with the airport budget needed to execute the plan, the capacity that was to be achieved from this new plan, provisions for packing, and job opportunities during and after completion of the project.
Also explained in this Master Plan were the landing and take-off roads as per the new plan, the size of the new airport after completion, and the services that will be offered. In this research, the focus was to evaluate this plan and determine if it has the capacity to address the current problems which affect the airport.
Analysis of the Report
Summary for the Chicago O’Hare International Airport Master Plan Report
The Chicago O’Hare International Airport Master Plan of 2004 gives a detailed report that outlines the changes that need to be implemented at this airport to improve its capacity and to help eliminate the current problem of constant delays that have been witnessed frequently at most of its terminals. These delays, averaged at 19.5 minutes per flight, are causing serious dissatisfaction among the clients who use this airport frequently.
The report identified the time needed to complete the project, the resources that will be necessary, and the benefits that will be achieved once the project is completed. The project was divided into two phases, with the first face scheduled to be completed in 2009, while the second phase was scheduled for completion in 2013. In order to review this plan appropriately, it will be necessary to focus on the specific items in the report.
Airport budget
This Master Plan was a major project that was expected to transform the Chicago O’Hare International Airport by increasing its capacity and efficiency in the operations. To do this, the management of the airport outlined the budget that was needed to finance the entire project. According to the report by Andolino (32), the budget for the plan was given in various phases based on the project that was to be addressed.
The decision to break the budget into individual activities within the larger project was meant to clarify how the expenditures will be made. In this plan, the management started by incorporating a $ 6.6 billion budget that was meant for OMP, as was proposed in 2001. The reason for incorporating this budget that was proposed in 2001 was that it had not been implemented despite its relevance to this master plan.
The proposal was, therefore, incorporated into the 2004 Master Plan. The runway resurfacing was estimated to cost $ 4.1 billion. The new program named World Gate that involved introducing additional terminals and gates on the east of O’Hare International Airport was estimated to cost $ 2.6 billion.
Other costs for parking facilities and other facilities within the airport were also defined in this plan. In total, the O’Hare Master Plan was estimated to cost $ 13.3 billion in a period of about 20 years. The city plans to receive a sizable Federal investment for this project. It expects to receive $ 1.45 billion from FAA Facility Charges and $ 594 million as a grant from the Airport Improvement Program.
Capacity analysis
The main aim of this project is to enhance the capacity of O’Hare International Airport to reduce congestions and constant delays. As of 2006, there was an average delay of 19.2 minutes for every flight that came to this airport. This was a clear indication that an urgent measure needed to be implemented to eliminate this problem. In the new plan, this delay was expected to be reduced to 5.0 minutes per flight by 2013.
This would not only help increase the capacity of the airfield but also reduce the cases of client dissatisfaction. In the plan, it was suggested that the airfield capacity be increased to 3169 flights per day by 2013, from the capacity of 2712 in 2004. This was about a 15% increase in the capacity of the airfield that was expected to be achieved by the end of 2013. Other than the airfield capacity, the plan also proposed major changes at the terminals and gates of this airport.
In the plan, new gates and terminals were to be established east of this airport at the cost of about $ 2.6 billion. This was expected to increase the processing capacity at these facilities by over 25%. The increase in the capacity at the terminals was also boosted by the new technologies that helped speed up the processes such as inspections and luggage movements.
Provision of parking facilities
The new plan has a comprehensive focus on the provision of parking facilities at this airport. The Master Plan proposes for the construction of the new Terminal 6 Complex. The complex plan has a detailed explanation of the parking facilities, landing and take-off roads.
In terms of the packing facilities, the complex has plans for circulation roads and curbs fronts, a parking structure, realignment terminals, and access roadways. These facilities are meant to accommodate both private and public transport facilities.
As of 2004, the packing facilities had a limited capacity, and sometimes the public and some private cars could only access them on a limited basis. This was expected to come to an end after the completion of Terminal 2’s interior upgrade. The new Terminal 4 that is scheduled to be constructed under this Master Plan is also expected to expand the packing facilities.
Landing and takeoff roads
The landing and takeoff roads are integral parts within the Master Plan 2004, which were scheduled for a major improvement to increase their capacity. In this report, the management of the airport clearly demonstrated their desire to ensure that the capacities of the runways are increased to meet the rising demand. The figure below shows the proposed designed of the primary departure, overflow departure, primary arrival, and overflow arrival runways that were to be implemented in the plan.
Figure 1: Runways Design. Source (Andolino 56)
The landing and takeoff roads were to be upgraded in two phases. The first phase involved re-carpeting the existing roads to improve their conditions. As per the plan, this was expected to take the first two years from the time the report was adopted by the FAA. The second phase was more involving and very costly because it entailed introducing new runways to expand the capacity of this firm.
Size of airport
The Chicago O’Hare International Airport Master Plan 2004 was meant to expand the current size of the airport by constructing new facilities and upgrading the existing ones in order to improve their efficiency. According to this report, this airport has been experiencing massive growth over the years; this makes it necessary to expand its size in order to reduce congestions and eliminate delays. The figure below shows the existing airspace with all the arrival and departure corridors, which were active as at the time the report was written.
Source: (Andolino 12)
As noted in the report, Chicago O’Hare International Airport is the second largest airport in this region in terms of passenger and cargo handling capacity and the physical size. However, the strategic importance of the city has seen pressure mounted on the facility resulting in congestion, which the plan seeks to address. By the time this Master Plan will be completed, the size of the capacity of the runways, parking facilities, gates, and terminals will be increased. This means that the airport will be able to handle more flights per given hour.
Job opportunities
Other than the physical structures that this Master Plan sought to change, another impact that it was expected to create was increased job opportunities at the Chicago O’Hare International Airport. The new facility would increase job opportunities to many residents of this city and people from other regions, either directly or indirectly. The new terminals will need to be managed by a new set of employees because the old terminals will still be active.
The new gates in the east will need additional officers. The increased capacity of the airport will require more pilots and cabin crew members as more planes are expected to land. More security agents will be hired, and so will the traffic controllers. Other than the people who were to be employed directly at the airport and in the airplanes, the increased capacity was also expected to create more jobs in this city indirectly.
More arrivals of visitors at the airport would create more jobs for taxi drivers and other agents in the transport sector (Bradley 121). This will also be expected to boost tourism in the city, which will further employ more people. The report emphasized the fact that there will be a positive ripple effect once the airport is completed.
Kinds of services in the airport for different kinds of people
The port will be open to various services for its clients. From charted planes to business and economy class services, the airport will be receiving visitors in various classes. The airport will also be able to handle a higher capacity of cargo once the upgrading is completed, as presented in the Master Plan 2004.
In the plan, the Duty-Free shops were to be expanded in order to accommodate more goods due to the increasing demand. Given the cosmopolitan nature of Chicago city and its strategic importance in the world, people from all over the world who were already using the facility by the time the report was written, will find the port very important when planning their travels.
Evaluation of the Report
A critical review of the report shows that the management of Chicago O’Hare International Airport did great work when coming up with the Master Plan 2004. Although the plan was very comprehensive and the report itself very calumnious, it is evident that the experts involved in drawing the report did thorough research before coming to conclusions. The sections discussed above clearly demonstrate how well their report was structured.
The management made an effort to make the complex calculations and construction designs simple in this report in order to make its consumption easy for those with limited financial, architectural, and engineering knowledge. The budget was broken down into individual tasks so that the officials at the FAA can determine the justification for every amount that this firm was requesting.
The Master Plan 2004 has categorically demonstrated the current capacity of the airport and the expected expansion of the facility that is to be achieved through this plan. This has been stated in a clear and conscious manner.
In this report, there is a clear demonstration in words and diagrammatically, the current situation of the parking facilities. This way, it becomes easy to determine what already exists, and the proposed changes that shall be achieved through the plan. It allows the FAA and other authorities to understand the deficits in the current facilities, and how the problem can be solved through the new strategy.
The diagrams show the current parking facilities, terminals, and gates that are actively used, and their capacities as compared to the needs of the airport. Also demonstrated clearly in the report are the landing and takeoff roads.
The report has an explanation of the current runways accompanied by the appropriate diagrams. This is accompanied by a detailed explanation that identifies the current deficits (Wells and Young 56). The report identifies jobs that will be created through this program, both directly through employments and indirectly in terms of job creation. However, it is important to note that the report has not gone into detail in discussing various services that the new airport will offer in addition to the current products.
The only explanations that are very clear are that the products offered by the firm will increase if the Master Plan 2004 is implemented effectively. However, this does not hurt the Master Plan 2004 much in terms of its value. The plan is satisfactory, and when implemented properly, it has the potential of expanding the capacity of Chicago O’Hare International Airport.
Review of the Comments of FAA on Chicago O’Hare International Airport Master Plan
Upon the receipt of the Chicago O’Hare International Airport Master Plan, the Federal Aviation Authority critically analyzed the document and gave their views on various components of the report. The comment on the facility boundary shows that the FAA is satisfied with the plan, only that small detail about boundary was left out, which should be included.
The researcher agrees with this comment. On planning activities and schedules, FAA notes that the process was successful, and so was the section on facility refinement, the fact that the researcher agrees with. FAA feels that the issue about airfield refinement has not been done satisfactorily. The researcher disagrees with this point because the report has a detailed explanation of this issue, both diagrammatically and a written explanation.
About stormwater management and utility planning, FAA notes that there should be a further analysis and data that needs to be presented in order to meet the expectation. It is a fact that the analysis was not completed (Cooper, 21). FAA feels that the Airfield simulation model experiments and models are still a work in progress, and the same comment is also given on the Roadway simulation model. This is a fact that is clearly demonstrated in the report.
FAA is satisfied with the composite concepts, and the researcher shares this view because it is clearly articulated in the report. However, this authority feels that the evaluation of the composite alternatives and the preferred composite concept selection has not been done satisfactorily in this Master Plan. The researcher has a contrary opinion about this based on the details provided in the plan.
This authority is also not satisfied with the Airport Layout Plan given by Chicago O’Hare International Airport, a comment that the researcher strongly disagrees with. The report has been comprehensive about the design and layout of the airport. Finally, the FAA feels that the issue about agency coordination and public participation has not been presented properly in the report. The researcher agrees with this comment (Cooper, 26).
Conclusion
The Chicago O’Hare International Airport Master Plan 2004 is a report that outlines the major developmental projects that would help improve the capacity and quality of services offered at the airport. The plan that is estimated to cost about $ billion will be divided into three main phases. The first phase is expected to be completed by 2009, while the second phase was scheduled to be completed by the end of 2013.
The expansion plan involves re-carpeting and construction of new runways, development of new terminals and gates, expanding the parking facilities, and redesigning the existing airport layout to reflect the new market demands.
Based on the review of the report done above, it is apparent that the report has successfully defined what is to be achieved, how to achieve it, and the resources needed in a clear and conscious manner. The Master Plan is practical and can be implemented as it is to help improve the capacity of this airport. The FAA also appreciates this fact, although it notes that some minor details are missing and should be included.
Inference
This report can be very beneficial to future researchers who may be interested in conducting a study in this field. The report will provide them with a rich background on airport planning, budgeting, expansion strategies, the relevance of including the public in such plans, and much more information about airport development.
Works Cited
Andolino, R. O’Hare International Airport. Chicago: Federal Aviation Authority, 2004. Print.
Bradley, A. The independent airport planning manual. Oxford: Woodhead Publishing, 2010. Print.
Burghouwt, G. (2007). Airline network development in Europe and its implications for airport planning. Hampshire: Ashgate, 2007. Print.
Cooper, B. O’Hare International Airport Master Plan. Chicago: Federal Aviation Authority, 2004. Print.
Wells, A., and Young, S. Airport planning & management. New York: McGraw-Hill, 2004. Print.
Airports can be viewed as the venues that contribute to a direct contact between various businesses all over the world (Derudder et al. 91). Whether airports are used as the tools for transporting people or products, they create the link between organizations that would have not otherwise existed, and the Dubai Airports company is one of those organizations. However, the firm has recently been experiencing significant issues as far as its operational and manpower-related cost are concerned.
Moreover, in the contemporary world, airports are powered by a set of complex operations, which must be carried out so that the services provided to the target denizen of the population could be of the highest quality. Going into details, one must mention the need for companies to meet the increasingly high service expectations from individuals and legal persons alike, the necessity to provide constraints on aeronautical charges, and the significance of maintaining quality at every level, including the local, the national, and the municipal ones.
Herein the necessity to invest in the areas of the Dubai Airports’ development such as its operations and human resources lies. Specifically, it is imperative to provide financial support or the areas such as HRM and the essential operational processes so that the costs for the areas in question could be reduced significantly and that the financial resources retrieved in the process could be used for improving the customer services.
Topic Literature Review
The significance of the strategies used for managing human resources and operations in the context of the airport environment can hardly be overrated (Federal Aviation Administration 1). Because of the need to process an increasingly large number of demands on a daily basis, an airport must function in accordance with a set of rigid regularity requirements, ICAO being the guidelines to use as the criteria. The personnel licensing and certification is especially crucial for the Dubai Airports’ operations at present because of the need to uphold the standards of efficient staff performance and the reduction of costs spent on operations maintenance (“Safety Oversight Manual” 2-3).
A closer look at the subject matter will reveal that the process of reducing manpower-related costs will require the redesign of the current HR approach. Particularly, the adoption of the tools allowing for a more efficient process of internal communications should be viewed as a necessity (Sun and Lai 54). The given strategy will permit increasing the funding for quality assurance, which aligns with the current vision of the company aimed at expansion and quality improvement: “We are driven to change the course of aviation history and to achieve our vision to be ‘the world’s leading airport company’” (Dubai Airports par. 1).
In addition, the interests of the target stakeholders will also have to be taken into account. Studies show that the costs of the Dubai Airports’ operations hinge on meeting the needs of the stakeholders such as the airline, the police, the customs service, and the immigrations (Basu 16). The promotion of the communication tools mentioned above helps coordinate the actions of the people involved, thus, making the work of the staff members from different departments organized.
When defining the strategy for assessing the quality of the Dubai Airport performance, one must give credit to the device known as the ACI Ranking system. Traditionally defined as the tool for locating the “International passenger traffic monthly ranking” (ACI Monthly Ranking par. 1), the specified system creates prerequisites for carrying out an analysis of an airport’s performance based on the number of requests processed, the passengers transported, and the comparison with the indices identified to the performances of similar firms worldwide.
According to the current ACI rankings, the Dubai Airports organization could use a significant improvement as far as its operations are concerned, as the entrepreneurship is currently ranked as the top airport company, its passenger traffic is getting increasingly high (from 6,400,70 in 2014 to 6,895,668 in 2015 (ACI Dubai Airports par. 1)). Therefore, the introduction of a sustainable strategy for managing the current HRM issues is critical to maintaining the firm’s position in the global ranking and creating premises for its successful development.
Objectives
Carrying out financial analysis of the airport’s activities and defining the current issues in the entrepreneurial strategies for cost management;
Evaluating the efficacy of the Dubai Airport as far as the provision of the suggested services is concerned;
Identifying the role of manpower in the company’s success or the lack thereof;
Locating the means of reducing the manpower-related costs by reconsidering the current HRM strategy;
Analyzing the current operational issues in the company by comparing the vision thereof to the process of tasks execution;
Suggesting the means of bringing the rates of operational costs down by addressing the staff’s efficacy;
Defining the strategy for addressing the above issues by applying the ACI Ranking comparison tool (ACI Monthly Ranking par. 1) to the analysis;
Considering the role of the HRM initiatives as the crucial tool for improving the company’s performance and promoting its sustainability in the global economy.
Project Outcomes
It is expected that the project should return the following results:
The capabilities of the Dubai Airport are identified and incorporated in the analysis for improving its current cost management approach and the HRM strategy;
An HRM initiative is designed so that the Dubai Airport’s operations could be enhanced;
An assessment of the company’s cost efficacy is carried out;
He existing loopholes in the cost management approach related to the usage of manpower and carrying out operations are identified;
The initiatives that will presumably help introduce a sustainable use of the company’s manpower and resources in relation to improving its foundational operations are suggested;
The new HRM strategy and the tools for reducing the operational costs are linked directly to the entrepreneurship’s current vision statement.
Reasons for Being Interested in the Project
Being a member of the Dubai Airports organization and representing its HRM department, I am concerned about the current state of affairs regarding the reasonability of the manpower strategy, and I have several suggestions that I believe will improve the firm’s performance considerably.
Questions to Be Answered
How can manpower costs be reduced by shaping the existing HRM strategy?
How can the operational costs be reduced by changing the HRM strategy adopted in the organization?
In what way can the HRM approach and the manpower cost management be linked to the company’s vision?
Research Methods
To carry out a full overview of the entrepreneurship’s operations and the existing issues in the HRM department, a mixed approach is strongly suggested. The qualitative assessment will serve as the foundation for identifying the connection between the company’s vision and the current HRM and operational strategies used by the managers. The qualitative method, in its turn, will help quantify the results and define the existence of a positive correlation between the suggested strategies and the possible improvements in the airport’s performance.
Questionnaires will be used as the main tool for data collection, open-ended questions being used for retrieving qualitative data, and closed-ended ones being the means of acquiring quantitative information. A matrix analysis will be incorporated into the qualitative study setting so that the essential outcomes of the suggested cost-reducing strategies could be identified. A Pearson correlation tool will serve as the foundation for the quantitative analysis since it helps locate the connection or the absence thereof between two or more variables, i.e., the suggested strategies the company’s vision, and its costs (manpower- and operations-related ones). In other words, the quantitative part of the study will prove the significance of the methods and tools designed in the course of the qualitative research.
Primary and Secondary Data Sources
The responses to questionnaires retrieved will serve as the primary data source for the analysis. The secondary data sources will include reports on the subject matter. Particularly, it is suggested that the performance reports issued by the Dubai Airports Company should be used for the purposes of the analysis. It is recommended that the 2010–2016 time slot should be embraced when studying the reports in question.
Works Cited
ACI 2016, Dubai Airports. Web.
ACI 2016, Monthly Ranking. Web.
Basu, Gautam. “Combating Illicit Trade and Transnational Smuggling: Key Challenges for Customs and Border Control Agencies.” World Customs Journal 8.2 (2014): 15–27. Print.
Derudder, Ben, James Faulconbridge, Frank Witlox, and Jonathan V. Beaverstock. International Business Travel in the Global Economy. Burlington, VT: Ashgate Publishing, Ltd., 2012. Print.
Dubai Airports 2016, Our Vision. Web.
Federal Aviation Administration 2010, Airport energy efficiency and cost reduction. Web.
Balanced Scorecards (BSCs) are highly important tools that are actively used in management and strategic planning, as they cover business strategy and mission from dissimilar angles including the financial viewpoint, customer, internal processes, and learning initiatives (McKay, 2004). Nowadays, BSCs are utilized in diverse contexts to cater to the needs of various stakeholder groups while making the existent business model highly customer-oriented.
In the context of this paper, apart from heavily relying on public contractors, British Airports Authority (BAA) actively employed the principles of BSC when designing the Terminal 5 (T5) project (Basu, Little, & Millard, 2009). This case displayed the flexibility and dynamics of BSC, as BAA not only used its basics but also paid substantial attention to the quality, productivity, efficiency of the business processes, and building trusting relationships with partners and contractors. It helped the company design a unique value proposition with the help of BSC and address the constantly rising demands from the customers’ viewpoint.
Comparison: Similarities
In the first place, it is evident that the T5 project as any other company using BSC focused on ensuring the compliance of corporate mission and strategy with its actions, measurements, and objectives (Murby & Gould, 2005). Apart from that, one of the critical elements of BSC is finance, and discovering a business strategy from this angle will help maximize profits, generate higher revenues, and become attractive to potential investors and shareholders (“EPM review: Financial perspective”, 2014).
It could be said that BAA reflected the main aspects of this strategy in detail. In turn, BSC underlines the vehement importance of Key Performance Indicators (KPIs) used to measure productivity and financial stability of the enterprise, and BAA also reflected this matter by evaluating its performance with the help of various scales.
At the same time, it is vital to note that the traditional BSC approach underlines the significance of working in collaboration, as it is often viewed as a key to success and integrity (Kaplan & Norton, 2015). It helps reach the desired outcomes and industrial benchmarks, and its effective implementation is displayed in the T5 project.
Lastly, leveraging learning and growth is one of the most critical forces of the BSC framework. The primary reason for it is the fact that know-how is a valuable asset that ensures the sufficient functioning of the organization as a complicated mechanism (McKay, 2004). In this case, BAA also relied on this approach by making the company’s decision-making knowledge-driven, future-orientated, customer-focused, and innovative. Overall, it could be said that BAA prioritized the balanced scorecard model, and this finding explains its superior financial performance.
Contrasting Points
Apart from some similarities, several characteristics were adjusted to comply with the main goals of T5. In the first place, BAA underlined the paramount importance of partnerships while making them the core of all business processes. Empowering suppliers and giving them a possibility to use productivity and financial control metrics to monitor changes in performance were the critical steps of the process.
They assisted working in collaboration while improving the current value proposition, discovering the situation from the viewpoints of different stakeholders, and continuously catering to the newly arising needs of the customers. These initiatives supported the integrity of decision making, as the management created an effective action plan to cultivate and support idea-sharing by using a four-tiered strategy and different agreements (Basu et al., 2009).
As a consequence of creating a multidisciplinary team, additional emphasis was devoted to quality. BAA unveiled that relying on ISO 9000 was not entirely effective (Basu et al., 2009). Along with that, commonly used quality guidelines such as PRICE 2 also tended to have some issues since the organizations referring to these standards “ticked many boxes” but not necessarily complied with the quality benchmarks in reality (Basu et al., 2009, p. 32).
In this case, it was reasonable for BAA to review these guidelines, as prioritizing the quality of the provided services and meeting consumer perceived expectations were the main missions of the company and the T5 project. Along with that, BAA discovered the quadrants related to internal processes from a different perspective. For example, when referring to productivity and efficiency, it was discovered that existent BSC’s quadrants did not fulfill the BAA’s mission and quality standards. Thus, BAA employed Non-Conformance Resolution (NCR) to understand the core issues, propose relevant strategies for improvement, and assure the alignment of all processes with best practices (Basu et al., 2009).
Reasons for Making Changes in General BSC’s Quadrants
The analysis conducted above showed that BAA’s implementation of the BSC framework was slightly different from the traditional model. Nonetheless, it could be viewed as entirely normal since, in the modern world, companies tend to operate in various industrial sectors while having dissimilar focuses and goals. For example, the need to make amendments to the traditional BSC framework is linked to value proposition (“EPM review: The new imperative”, 2014).
Nonetheless, business perspectives continue to revolutionize while highlighting the duality of value proposition and the need to satisfy customers from different socio-economic groups (“EPM review: The new imperative”, 2014). A combination of these factors along with globalization makes the market highly competitive and requires filling the gaps in strategies and utilizing an integrative approach to organizational improvement. Consequently, it becomes evident that consumer imperative and orientation are the definers of corporate success.
In the context of the case study, BAA was able to identify the roots of the problems and propose well-developed solutions to cater to the needs of different consumer segments and comply with organizational goals and expected outcomes. It could be said that the nature and specifics of the T5 project were the major processes that defined the need to make modifications to the BSC framework. Nevertheless, its main principles remained the same while making insignificant adjustments helped increase productivity. This example displays that the BSC model is flexible and can be implemented in the context of any industry.
Conclusion
In the end, it could be said that an analysis of BAA’s T5 project unveiled mysteries of the application of BSC. BAA could be viewed as one of the bright examples showing the dynamic nature of BSC. Initially, BAA relied on the main concepts of the business instrument such as a focus on integrity, KPIs, collaboration, learning, and knowledge.
Nevertheless, it did not fill all the existent gaps, and to address some of the issues, the company used partnerships, quality and production standards, idea-sharing atmosphere, and NRC. A combination of these factors defines organizational success while highly referring that the roots for making these amendments pertain to a plethora of opportunities in the business field and duality of the value proposition. It could be said that other businesses have to review this case precisely, take advantage of some strategic initiatives, and implement its strengths in practice.
References
Basu, R., Little, C., & Millard, C. (2009). Case study: A fresh approach of the balanced scorecard in the Heathrow Terminal 5 project. Measuring Business Excellence, 13(4), 22-33.
Birmingham International Airport, which is currently known as Birmingham airport, is situated east of Birmingham city centre in England. The airport serves both domestic and international flights mainly to the Middle East, Europe, North America and Asia. Ranked the 7th busiest in the United Kingdom, the airport has been a base for several famous airlines in Europe, such as Thomson Airways, Ryanair, Flybe, and Monarch. Moreover, Birmingham has been one of the most favourite airports for many passengers in Europe as evidenced in its performance in 2013, when it managed to hit a record of 9.6 million passengers (Feigh, 25). This may be attributed to the role played by operations manager and director at Birmingham Airport.
Key Functions of Operations Management at the Airport
There are various kinds of operations that are handled by operations management in order to provide quality products and services to customers. Some of the key functions of operations managers at the airport include coordinating and controlling terminal operations, controlling arrivals and departure of flights, and managing the day-to-day running of the airport as well as the performance of employees and service contractors.
Moreover, an operations manager liaises with other organisations and government to achieve a common goal in air transport. Finally, the manager prepares reports on monthly operations in the industry including training and development of supervisory staff (Feigh and Pritchett 26)
In controlling and coordinating the airport’s terminal operations, subordinate employees are given particular objectives and goals to accomplish. They undergo effective training in order to enable them to perform well in their respective areas of work. Big airline industries have a high number of employees to enhance service delivery to a large number of customers, unlike smaller airlines that have few and manageable crews.
Another role involves the management of arrival and departure process of flights at the airport terminal, which is achieved through the day-to-day planning process. When certain unfavourable circumstances arise, change in operation planning is effected in order to determine the best way to handle issues and monitor progress. In order to manage day-to-day activities, operations managers should fully understand the technicalities of various positions involved. Some of the positions include central control coordinator, terminal departure supervisor, ramp patrol supervisor, and ramp planning supervisor (Feigh et al. 169). Indeed, through experience and knowledge, the operations manager is able to know the responsibilities of each position and manage every task involved.
In managing the daily performance of staff members and service contractors, operations managers monitor and assess day-to-day activities of subordinate employees as well as the facility maintenance department. Facility maintenance supervisor ensures that any task on the ground is completed and resolved on time in order to facilitate the safety of flights. On a daily basis, each employee’s role is monitored effectively in order to gauge progress and avoid cases of poor customer service (“Guidebook for Airport Irregular Operations (IROPS) Contingency Planning” 189).
It is also worth noting that operations managers liaise with organisations and government agencies to aid in the development of communities and infrastructures. An effective communication network with the government is important for both the airline industry and the country, for it enables the airline industry to make plans and decisions to achieve a clear operational process for the public. It also involves various organisations that work hand-in-hand to ensure effective community policies in various regions.
Operations management plays a key role in monitoring flight data in order to make various changes, such as various direct flights that are about to depart or arrive, ensure that flight activities of all aeroplanes are adhered to, ensure that flights are carefully designated to proper parking spaces, make any changes to different routes of aeroplanes in cases of emergency and ensure that all movements of aircraft at the ground are smooth and efficient.
The person in charge of the process is the on-duty ramp supervisor who publishes all the required information for flights. This information includes the time of departure and arrival of flights, time for operation, flights destination airports, and other operational activities that involve coordinating flight movements. This information is fed into central operational software where it is released to the public for convenience.
Responsibilities of Operations Director at the Airport
The operations directors are basically concerned with short-term and medium-term operational planning and day-to-day operations in an organisation. Managers come up with teams that oversee the planning of new infrastructures, such as people, systems and car parks. These teams effect company’s long-term vision through careful study of the accomplishments and long-term projections (Feigh and Pritchett 48). They also provide leadership and coordination for various organisations and companies that work on the sites of construction. Operations directors occasionally visit project sites to ensure the smooth running of events and also provide advice on how to handle various activities well.
Importantly, organisations must seek approval from operations directors on new undertakings concerning a given project. They have operational planning meetings on an annual basis to discuss the future prospects of a company. Finally, operations directors invite various managers to annual meetings to deliberate on major issues concerning new undertakings of a company.
Challenges faced by Operation Director at the Airport
Due to delay or diversion of flights, operations directors are forced to constantly come into disagreements with customers. In some situations, customers are forced to initiate a legal suit against airports, thus affecting profitability and damaging the reputation of the sued organisation. Other than that, flights may be diverted to different destinations due to unfavourable weather conditions that lead to increased expenses in the airport (Berry and Pace 1412). Major incidences concerning security threat, such as bomb threats, pose a challenge to management of the airport. All in all, the operations director works hand-in-hand with the operations manager to coordinate and manage all the activities that take place in the airports.
Relationship between Day-to-Day Tasks and Long-term Issues at Airport
In order to achieve long-term goals of the airline industry, Richard has to successfully manage and ensure that daily activities are planned adequately. This would ensure that the goals and vision of the company are met through hard work and commitment to the industry’s objectives (Feigh 259).
Through weekly communication with various operations managers, Richard ensures efficient planning and coordination of various activities within and outside the airport. Here, he is able to monitor and assess different situations in the company. He also works hand-in-hand with organisations in order to enhance strategic planning and implementation of long-term goals. Nevertheless, organisations and government agencies provide available resources that the company requires to develop infrastructure, especially considering that the airport serves many travellers who benefit the government either directly or indirectly.
Conclusion
As discussed above, Birmingham International Airport has been successful due to proper management by its operations manager and operations director despite operating in a competitive environment. Clear definition of roles for these two positions enhances coordination and communication at the airport, including the smooth flow of travellers and airlines. Finally, as evidenced by the case study involving Richard, planning, and communication are essential for the success of an airport.
Works Cited
Berry, Katherine, and John J. Pace. “Examining the Actors and Functions of an Airline Operations Center.” Proceedings of the Human Factors and Ergonomics Society Annual Meeting 55.1(2011): 1412-1416. Print.
Feigh, Karen M. “Incorporating multiple patterns of activity into the design of cognitive work support systems.” Cognition, Technology & Work 13.4 (2011): 259-279. Print.
Feigh, Karen M., and Amy R. Pritchett. “Modelling work for cognitive work support system design in operational control centers.” Journal of Cognitive Engineering and Decision Making 4.1 (2010): 1-26. Print.
Feigh, Karen, Army Pritchett, Julie Jacko and Tina Denq. “Contextual control modes during an airline rescheduling task.” Journal of Cognitive Engineering and Decision Making 1.2 (2007): 169-185. Print.
Guidebook for Airport Irregular Operations (IROPS) Contingency Planning. Washington DC: Transportation Research Board, 2012. Print.
