Emirates is a public limited company that operates in the global airline industry. The airline provides a wide range of tour and travel services (The Emirates Group 2013). In its operation, Emirates has integrated the concept of big data in an effort to develop a competitive advantage (Mayer-Schonberger & Cukier 2013).
Definition of big data
Big data refers to a large volume of data that is difficult to process and analyze using traditional data analysis tools (Yiu 2012). It is characterized by volume, veracity, variety, and velocity (Zadrozny 2013). Volume refers to the amount of data to be analyzed by an organization in order to make an effective decision (Simon 2013). Veracity refers to the quality and originality of the data (McGuire, Manyika & Chui 2012). On the other hand, velocity entails the speed with which data is generated while variety refers to the different types of data (Sicular 2013).
Some of the sources of big data include cloud applications, social network profiles, and data warehouse appliances (Brust 2012). Examples of big data include customer contacts and activity reports on social media (Dymacz 2013). The Information Technology sector is one of the largest producers of big data. Big data is very essential in developing a competitive advantage (Furrier 2012).
The usefulness of big data to Emirates in identifying business information
Emirates Airlines’ management team is committed to developing a high competitive advantage by utilizing big data (Enderie 2013). The firm has developed a customer relationship management application known as Knowledge-driven In-flight Service (KIS) (McKeon 2012). The application enables the firm to store diverse customer information hence improving its in-flight services (Kollau 2012).
The firm has also integrated ElitePad 900 as one of the tablets to be used in gathering big data (Lardinois 2012). This provides the firm’s flight crew with a unique opportunity to gather big data. For example, the firm will be able to gather numerous customer opinions and complaints regarding the services offered. Moreover, the application will enable Emirates to gain insight into the customer’s travel behavior and other personal information (Microsoft: News Centre 2013). Enderie (2013) asserts that ElitePad 900 will enable the firm’s cabin crew to offer personalized services. By using big data, Emirates will be able to improve the effectiveness with which it delivers customer services. Additionally, the firm’s management team will be able to make optimal decisions that enhance the firm’s competitiveness.
Accounting information is important to both external and internal users. Management uses the information for decision making. With appropriate information, companies make decisions which increase company’s competitiveness.
Management accountants are responsible of advising an organization’s top management and policy makers on matters regarding finances to ensure there are effectiveness, efficiency and optimal use of resources. Airline industry, in the United States of America and the world is general, is highly competitive. There is an increased innovation of services and equipments. Customer needs have also changed.
Emirates Airline company (mostly referred just as Emirates) is an international company which require decisions responsive to airline market today (Horngren, Srikant & George, 2006). This paper looks into how management accounting can supply information for decision making. It will not get into deep analysis of the accounts but will touch on the important areas that management accountants have assisted the company.
History of Emirate limited
Emirate is the national carrier of Dubai, United States Emirates. It is rapidly diversifying to other countries and has over 100 destinations in over 60 countries. It is a sub-subsidiary of Dubai Investment Company, through The Emirates Group. Its head quarters are in Dubai.
The company was incorporated in the year 1985 as an international flight company and made its first flight from Dubai–Karachi on 25 October 1985. The company picked quite rapidly and in 1987, it had managed to secure eleven destinations.
According to the company’s financial statement 2010, the company had a total of 36,652 employees distributed in different countries. The accounts also reported that in the year 2009/ 2010, the load cargo increased by 12.2% to 1,580,000. Emirates face high competition from Virgin Atlantic, Qatar airways and Ethiopian Airways.
In pricing its products, the company has three classes of passengers; business class, execute class and economy class. Economy class is the cheapest and execute class most expensive. The pricing depend on the services offered in a certain class and the level of comfort.
Policies are made after consultation with major parties likely to be affected by a certain policy. Parties consulted range from employees to competitor. Current top policy makers are, Maurice Flanagan (Executive Vice-Chairman), Tim Clark as the company’s President. The chief executive officer is Ahmed bin Saeed Al Maktoum (Emirates Airlines Company Corporate Website, 2010).
Emirates Management accounting
Financial and monetary resources are limited. They require to be managed properly. It’s the mandate of management accountants to assists in managing such resources. Financial management is the major task of management accountants. They are mandated with the task of ensuring that financial decisions are made efficiently and timely for the benefit of the company.
Financial management has two aspects; managing working capital and long-term financial decisions management. When a company’s working capital is well managed, it’s able to fulfill its short term financial obligations when they fall due. Long-term financial management is important to give a company a clear future goals attainment strategies and pathways.
There is always a number of ventures that a business can make; however there is the best alternative, it is the management accountant which should advise on such issues.
For example, management accountants should advise whether the company should invest in government bonds and bills which are certain and risk free but with low rate of return or invest in volatile shares which have a likelihood of offering high returns in the future but are highly risky.
The decision of how to distribute the available fund can only be made more efficiently by the assistance of management accountant (Sullivan & Sheffrin, 2003).
Information contained in financial information is a summary of operations that have taking place in an organization. They cover a certain period of time. The main aim of a business is to make profits. Whether the company has a profit or a loss is shown by financial accounts.
If the company is making a loss, it’s an alarm call to the management. Emirates, makes its end year accounts on 31st March. When the accounts are made they are discussed internally as well released to the public for their use by external users like shareholders.
There are number of investments that the Emirates Airline Company is embarking on. They can be divided into human development (service investments) and infrastructure investments. Before a certain decision is made, management accountants must be involved. They are supposed to give information about the viability of a certain investment. When they are doing so they consider the returns likely to be received from an investment.
When emirates want to make a merger or an acquisition, management accountant are involved in collecting of data and analyzing the prevailing condition to ensure that they make mergers with companies which will assist it attain its goals and objectives. When making airline mergers, the department looks into the countries that the other company can fly to.
A merger should not be made to companies which fly the same route with Emirates. This information are fetched and provided by the management accountants. Acquisition is a tricky engagement; a company should calculate well. This is in determining the cost of acquisition to ensure that the company does not buy a company more expensive than it is actually worth.
In modern businesses, there is an increase in social corporate accounting. This is where businesses are made accountable of their activities. What to invest in and how much to invest is a decision that management accountant of Emirate assists the company in. The department is responsible of going out, interacting with the people and recognizing need in the society that the company can assist (Dury, 2006).
Different techniques in management accounting
Budgeting
Emirate management accountants are used in budgeting. Budgeting is making future financial decisions/plans; it uses past and current data of a business. It is a financial management tool that is crucial to ensure that the policy of going on concept in a business is adhered to. It lays a framework that a company can work with in the future.
Emirates management accountants analyzes past performance, present performance and predict the future operations. This assists the company to predict the future needs and make a budget.
Internal control
Internal controls are check and balances in an organization aimed at maintaining integrity in the company’s process. It ensures that funds are not misappropriated and are managed for the good of the organization. This ensures that a company has better fund management. Management accountants are responsible of maintaining good working internal controls. Internal controls also assists external auditor in compiling their report.
Working capital control
Credit is almost inevitable in a company; there are debtors and creditors which the management must monitor and ensure they are operating well. In case of creditors, the company management accountant has the mandate of ensuring that creditors are paid according to the credit agreement. They should be paid in good time to create good relations with suppliers. With good relations, the company supply chain management is facilitated.
In the case of debtors, the duration that they should keep the companies money should be stipulated by management accountants. Debtors are current assets which the business need to manage. Well managed debtor management system assists a company gets funds it requires for short term obligations.
There are different sources of capital in an organization. They are generally divided into borrowed capital and owner’s capital.
The choice of the financing method to adopt should be made with the assistance of management accountants. In Emirate, management accountants have the mandate of analyzing the available options of financing which include issuance of more share capital, taking a bank loan or selling some of its properties.
Key management Accounting techniques recommended for Emirates
Other than maintaining a robust management accounting system, the company should not ignore the need for knowledge management and business information tools as an addition of existing management accounting tools. When this information is made available in the company, it will assist in making better and timely decisions. The quality and timeliness of a decision determines the competitive of a company.
For example, there has been a move to low cost planes alongside the use of Jumbo planes. When the company maintains a pool of information on the market trends, it will be able to make decisions that are timely regarding what point they should engage in low cost planes and which routes should they use Jumbo planes.
When a company maintains a rich knowledge and nurtures its intellectual assets, it gets a chance to orient and train new staffs more effectively.
For example engineers maintained in the firm can use their pool of knowledge to show new employees on mechanical issues they can expect from a certain plane and how to handle it. Another example is in service delivery. Experienced hostesses are able to handle hostile passengers more effectively and thus the general service of the company increases (Weetman, 2010).
Justification
Knowledge management and business intelligent strategies are new management methods which can offer supporting information to management accountants for better decisions. They will assist Emirates in overall improvement of its financial structure.
Strength and weaknesses of the analysis
The analysis was based on end year financial statements and notes to account. They are a summary of processes in Emirate Airline Company and thus when considered a total analysis of the company’s performance is undertaken. The weakness with this approach is that management accounting covers more than just the end year financial statements. For a deeper analysis, the research would have required the following;
A framework of internal processes
Working capital management structure
Daily, weekly and monthly sales values
The rate of management accountants staffs turn over
Qualifications of management accountants.
Branch accounts and
Long-term liabilities agreements
With the above a better analysis would have been made (Anthony, Hawkins & Merchant, 1999)
Conclusion
Management accounting offers crucial information for decision making. In Emirate, one of the world’s largest airline companies, management accountants are involved in almost all financial decisions to ensure that the company is effectively managed. The success of the company can be attributed to their team of management accountants. They however need to adopt knowledge and business intelligence tools in their accounting system.
Reference list
Anthony, R., Hawkins, D. & Merchant, K. 1999 Accounting: text and cases. 10 the ed. Boston. McGraw Hill.
Dury C. 2006. Management Accounting for business. London. Thomson Learning
Financial statement analysis helps to improve the Emirates Airlines Company management’s decision making activities. Emirates Airlines Company is one of the world’s fastest growing airline companies. The company is based in Dubai, United Arab Emirates. The financials statement analysis shows that Emirates Airlines Company performed profitably well during the 2011 operational year.
The financial statement analysis ratios include the current ratio, quick ratio, net profit ratio, and return on investment ratio. The SWOT analysis is used to determine Emirates Airlines Company strengths. In addition, the SWOT analysis is used to determine the Emirates Airlines Company’s weaknesses.
The company’s SWOT analysis delves into the company’s opportunities to increasing its revenues. The SWOT analysis shows that the company hast o contend with its encroaching threats. Consequently, Emirates Airlines Company must focus on retaining its current position as the top passenger and cargo entity in the United Arab Emirates. Indeed, Emirates Airlines Company profitably performed in United Arab Emirates’ airline business operations during 2011.
Introduction
Emirates Airlines Company focuses on increasing its revenues. The research centers on financial statement analysis of Emirates Airlines Company. The research centers on
The SWOT analysis of the company. Emirates Airlines Company generated favorable SWOT and Financial Statement Analysis figures for 2011.
Background
Emirates Airline Company is the official flagship of the United Arab Emirates. The company offers air transportation services to its current and prospective clients. The clients come from different parts of the world. The clients arrive from different locations around the world. Similarly, the Emirates Airlines Company is strategically located in the United Arab Emirates residents. The residents are eager to leave their home country, United Arab Emirates, for a vacation or business trip to any part of the global market place.
Further, the Emirates Airlines Company generates different revenue types. Food service revenues are significant contributors to the Emirates Airlines Company’s revenues. The Emirates Airlines Company offers cargo flight serves. The service helps the augment the Emirates Airlines Company’s total revenues. The company also generates revenues from carrying physical mails. Physical mails may perish or become lost within the transportation delivery dates.
Literature review
There are different Emirates Airlines Company segments. Emirates Airlines Company operates from Dubai, the fastest growing cities in the global market place (Taneja, 2008). The Destination and Leisure Management is one very popular Emirates Airlines Company segment. The company also operates its own subsidiary.
One of the subsidiaries is the Emirates SkyCargo. Another Emirates Airlines subsidiary is the Skywards cargo services. A third Emirates Airlines Company is the Emirates official store display center. The Emirates Airlines Company operates its own commercial store; the store’s name is EmQuest. Further, the Emirates Airlines Company includes an engineering division. Lastly, the company opens its own airplane store market segment.
The company sells its passenger tickets at low prices. The low prices are understandable. The private enterprise would have to charge higher passenger and cargo fares to cover the amounts allocated to government taxes. Most companies prefer using Emirates Airlines Company’s services because it is faster than sending the cargo through land (Morrell, 2011). In addition, the company must include an additional amount to cover the operating expenses of the company.
The operating expenses include the employees’ salaries. In addition, the operating expenses include the advertising expenses. Further, the operating expenses include the cost of repairing and maintaining the Emirates Airlines Company airplanes in good working condition.
The operating expenses include the fuel, oil, and other expenses to ensure the Emirates Airlines Company planes can fly the customers to their preferred destination. The low Emirates Airlines Company passenger prices encourage the current Air France and Qantas airline passengers to shift to the cheaper Emirates Airlines Company’s airplanes (Besanko, 2009).
Methodology
In terms of methodology, the financial statement analysis was used to determine the financial health of the company, Emirates Airlines. The use of SWOT Analysis complements Emirates Airlines’ 2011 financial statement analysis.
Application (data analysis)
Financial statement analysis
For the year 2011, Table 1 indicates the above Emirates Airlines’ financial statement analysis’ current ratio shows the company’s current assets of 21,867 is 1.07 times higher than the company’s current liabilities of 20,498. The ratio indicates the company has enough current assets to pay its currently maturing current liabilities during the year.
For the year 2010, Emirates Airlines’ current ratio analysis shows the company’s current assets portion amounting to 18,677 is 1.01 times higher than the company’s 18,520 current liabilities portion. The financial statement ratio indicates the company has enough current assets available for the payment of its currently maturing current liabilities during the year.
Comparing the two accounting audited financial statements’ accounting periods, the year 2011 current ratio of 1.07 shows a better financial statement liquidity performance compared to the lower 1.01 current ratio financial statement performance for the year 2010. In terms of clarification, the company’s current assets portion of the financial statements is composed of cash, cash equivalents, short term investments, accounts receivable, short term loans, inventories, taxes, other current assets and assets held for sale during 2011 and 2010.
The company’s current liabilities portion of the financial statements include the company’s short term borrowings, accounts payable, dividends payable. For the year 2011, table 2 shows that the above financial statement analysis shows the company’s total debt to total equity ratio includes the company’s total debt amounting to only 44,188. The figure is 2.11 times the company’s total equity amounting to 20,902.
The company’s total debt figure is higher than the company’s total equity amount. For the year 2010, the above financial statement analysis shows the company’s total debt to total equity ratio. The ratio indicates the company’s total debt amounts to only 38,072. The figure is 2.18 times the company’s total equity amounting to 17,475. The ratio indicates the company’s total debt is higher than the company’s total equity.
The best debt to equity ratio is defined as a one to one relationship. Thus, the company must generate loan amounts equal to the amount invested by the stockholders of Emirates Airlines Company. Comparing the two accounting periods’ audited financial statements, the year 2011 debt to equity ratio of 2.11 is financially better because the 2010 financial statement liquidity performance ratio is lower when compared to the 2.18 debt to equity ratio for the year 2010.
The Emirates Airline Company’s preference for bank loans is understandable. The company may not prefer generating cash inflows from offering new shares of stocks. The shares of stocks are generally issued to current stockholders and future stockholders. In turn, the current stockholders and future stockholders will automatically become shareholders of Pfizer Company.
The owners’ share in the company is arrived at by dividing each stockholder’s own share by the total number of shares being offered to both the current investors and future investors. In turn, the current shareholders as and future shareholders prefer to invest their funds in the company with the intention of generating dividend income.
Dividends are arrived at by dividing the company’s annual net income amount by the total number of outstanding common stocks. In terms of prioritizing dividend payments, Emirates Airline must prioritize the payment of the preferred shares’ dividend income. After the preferred shareholders of the airline company are paid, the excess dividend amount is distributed to the owners of common stocks (Maguire, 2007).
Table 3 shows that Emirates Airlines Company’s 2011 quick ratio shows the company’s quick assets of 20,577is 1.00 times higher than the company’s current liabilities of 20,498. The Emirates Airlines’ 2010 quick ratio shows the company’s quick assets of 17,592is 0.95 times higher than the company’s current liabilities of 18,520.
The comparison shows the company has enough quick assets available to pay the company’s currently maturing current liabilities within the same year. Comparing the audited financial statements of 2011 and 2010, 2011 is financially better than 2010 because the 2011’s quick ratio of 1.00 is higher than the 2010 financial statement liquidity performance (quick ratio) of 0.95. In terms of clarification, the company’s quick assets are composed of cash, cash equivalents, short term investments, and accounts receivable (Fabozzi, 2010).
In terms of cash ratio analysis, table 4 shows that the 2011 Emirates Airlines’ 10,196 cash, cash equivalent, and marketable securities amount is 0.50 times lower than the company’s current liabilities. The higher liabilities amount is 20,498. The financial statement ratio shows the company does not have enough cash and cash equivalent amounts available to pay the airline company’s maturing current liabilities during the year.
For the year 2010, the above financial statement analysis shows the company’s 9,335 cash, cash equivalent, marketable securities amount is 50 percent of the company’s 18,520 current liabilities amount. The financial statement ratio indicates the company does not have enough current assets available for the payment of the company’s currently maturing current liabilities. Comparing the two accounting periods’ audited financial statements, Emirates Airlines has similar cash ratio results for both 2011 and 2010 (Wahlen, 2011).
For the year 2011, Table 5 shows that the above financial statement analysis (return on investment) shows the Emirates Airlines’ 5,129 net income is 9 percent of the United Arab Emirates’ 60,318.50 average total assets.
For the year 2010, the above financial statement analysis computation (return on investment) shows the company’s 3,418 net income amount is 6 percent of the company’s average total assets amounting to 55,547. Comparing the two accounting periods, the 2011 accounting period fared better than the 2010 accounting period (Pratt, 2010).
SWOT analysis
Strengths
Using SWOT analysis (Ferrell, 2010), Emirates Airlines has proven itself to be one of the world’s best airlines, in terms of quality service. As proof, the company was able to generated an estimated 20 percent airline passenger revenue has increase during the2001 November season.
The passenger seat sales continue to remain at 80 percent or more. In addition, the Emirates Airline Company generated an asset increase. The asset increase is on its 7th year continuing trend. In fact, the Emirates Airline’s fleet increased from its 60 aircraft status (2004) to its current 141 aircraft status (2011). Specifically, Emirates Airline has the most number of A380s as well as 17 crafts. In addition, the company has the largest number of Boeing 777s.
In addition, the Emirates Airlines Company caters to the airline passenger needs leading to and coming from more than 114 destinations around the world and within the United Arab Emirates. Emirates Airlines Company also fills the needs for airline flight going to and coming from over 66 countries around the world.
As usual, the Emirates Airlines Company is planning to add more flights to fill the increased needs for airline flights during 2012. The company will increase its A380 airplane passenger type from its currently owned 90 units s to the higher 120 units.
The company is currently purchasing an additional 192 units of passenger airplanes for fill the increasing demand for the company’s passenger planes in 2012. In addition, the Emirates Airlines Company has constructed seven lounges to fill the comfort needs of the Emirates Airlines Company current and prospective clients.
Another of the airline company’s strength is the Emirates Airlines Company’s open policy. The company is welcome to diverse inputs. The inputs include those coming form the company’s current and prospective clients. The client inputs include complaints regarding the company’s current services, suggestions on how to improve the Emirates Airlines Company’s services, recommendations to hasten the speed and quality of the company’s services.
The company includes inputs from the competitors’ products and services in line with retaining the company’s current position in the United Arab Emirates airline passenger market segment. The company continues to increase the number of flight schedules. The increase is needed to cater to the increasing demand for airline seats going into or going out of the United Arab Emirates.
Weaknesses
In terms of weaknesses (Ebers, 2007), Emirates Airlines Company’s current business operations is affected by the United States’ 2008 economic depression. The depression triggered a drop in the demand for airline tickets. Many of the people lost their jobs due to bankruptcy.
Many companies closed their shop during the 2008 economic meltdown. Consequently, the unemployment rate increase precipitated to a decrease in the company’s airline tickets. Specifically, the company’s net profits had declined to only 982 m Dirhams ($267.4 million) the 2011 annual accounting period. Emirates Airlines Company Chairman Sheikh Ahmed bin Saeed Al Maktoum emphasized the economic depression triggered a decline in the demand for airline tickets.
In turn, the decline in the Emirates Airlines Company airplane tickets triggered a decline in other business types within the United Arab Emirates territory. The Emirates Airlines Company revenue decline precipitates to the decline in Dubai’s tourism industry. The Dubai businesses cater to the demands, needs, wants, and caprices of local and foreign nationals.
Opportunities
In terms of opportunities (Ebers, 2007), the Emirates Airlines Company is committed to enhancing its current popular images as one of the best passenger -centered passenger plane companies. To comply with the projected Emirates Airlines Company image, the company is serving the passenger passing through the doors of the Unite Arab Emirates airport.
By increasing the company’s current airplane units, the Emirates Airlines Company is able to continue the Emirates Airlines Company’s current high quality service to the current and prospective discriminating clients. The company can increase its current airport passenger volume to new destinations around the world.
The company can negotiate with the countries to allow Emirates Airlines Company to increase its current flights going into a new country destination as well as increasing the number of flights going into the United Arab Emirates. To successfully increase the number of airline passenger, the company implements courage, honesty, and strengths in all its global business operations.
In terms of operations, the company focuses on research and development activities. The activities are geared towards increasing operational efficiency, passenger service effectiveness, cost reduction processes.
Another opportunity it to replace the decline for airplane passenger tickets with an increase in Emirates Airlines Company cargo space. The company can maximize the benefits of setting up the company own global airfreight business. The company can hire sales agents who fill focus on increasing Emirates Airlines Company airplane cargo space. Further, the company will focus on advertising its online website.
The clients will find it easier to book their next flights online. The online passenger registration system will encourage the current and prospective clients to book their flights in the safety and comfort of their homes, offices, restaurants, beach, and while travelling from one place to another.
Threats
Based on the threats (Ebers, 2007), the increase in gasoline prices significantly affected the other businesses within the Dubai environment. In addition, Emirates Airlines Company is dependent on third party vendors. Emirates Airlines Company is forced to buy its raw materials and other requirements. To resolve the situation, the Emirates Airlines Company should accept the supply bids from three or more suppliers. With the three supplier alternatives, Emirates Airlines Company can reduce its dependence on the suppliers.
On the other hand, Emirates Airlines Company’s use of only one supplier will force the company to succumb to the pressure of the monopolistic one supplier resource. Having three competing suppliers encourages the Emirates Airlines Company to choose the company having the least possible cost, highest possible quality and best after sales supplier services.
In addition, the volatility of the global oil prices hurts the Emirates Airlines Company financially. The increasing prices of oil precipitate to an increase in company’s gasoline and oil expenditures. The wars have contributed to the increase in the global market price of the fossil fuel, gasoline. The increase in gasoline and oil expenses forces the Emirates Airlines Company to increase its current airline ticker prices.
An increase in the Emirates Airlines Company passenger and cargo selling prices will translate to a lower demand for the airline passenger tickets. One of the economic principles (supply and demand theory) indicate that as the prices of commodities increase, the current and prospective clients’ demand for the commodities decrease. The selling prices of the Emirates Airlines Company passenger and cargo tickets are not exempt from the supply and demand theory of economics.
Conclusion
Based on the above discussion, financial statement analysis aids in enhancing the Emirates Airlines Company management’s decision making activities.
The financials statement analysis indicates that the company fared profitably well during the 2011 operational year. The SWOT analysis indicates how Emirates Airlines Company should focus on keeping its current position as the top passenger, and cargo entity in the United Arab Emirates. Indeed, Emirates Airlines Company generated positive financial statement analysis and SWOT data 2011.
References
Besanko, D. (2009). Economics of Strategy. New York: J Wiley & Sons Press.
Ebers, M. (2007). SWOT Analysis. New York: Grin Press.
Fabozzi, F. (2010). Analysis of Financial Statements. New York: J Wiley & Sons Press.
Ferrell, O. (2010). Marketing Strategy. New York: Cengage Press.
Maguire, M. (2007). Financial Statement Analysis. New York: Grin Press.
Morrell, P. (2011). Moving Boxes by Air: The Economics of International Economics. New York: Asghate Press.
Pratt, J. (2010). Financial Accounting in an Economic Context. New York: J Wiley & Sons Press.
Taneja, N. (2008). Flying Ahead the Airplane. New York: Ashgate Press.
Wahlen, J. (2011). Financial Reporting: Financial Statemetn Analysis and Valuation. New York: Cengage Press.
The government of Dubai set up The Emirates Airline Company in 1985 by the Dubai government. German Airline, its founder, supported the company (“The Emirates Story” 1).The company has been recognized in several ways. For instance, in 2007, it was noted to be the number eight company in size within the world market in regard with the international passengers transported.
It is also recognized as the number five company within the airline industry in terms of “the scheduled international passenger-kilometers flown” (“Leadership analysis: Emirates Airlines” 1). The company is also recognized for being among the five airline companies, which carry out their operations in the whole “wide-body aircraft feel” (“Leadership analysis: Emirates Airlines” 1). Beginning from the time the Emirates began operating, they have been in a position of gaining a competitive advantage within the market.
The current leaders in this company are regarded as being very influential and important people in the organization and this is for the reason that they are the people who ensure objectives are realized in the company. Moreover, this company’s success is attributed to their business as well as marketing strategies that enable the company to stay ahead of the competition in the industry (“Leadership analysis: Emirates Airlines” 1).
In the present day, every business organization is making an effort to employ strategies, which would boost or sustain their competitive advantage within the market and Emirate is one of them.
In this regard, a company’s management as well as its corporate strategies give description of leading and directing operations in the organization by “exhausting their available resources extensively in order to attain the organizational objectives” (“Leadership analysis: Emirates Airlines” 1). The key competitors for this company include British Airways, Qatar Airways, Gulf Air Company, Deutsche Lufthansa, and Air France-KLM S.A.
These companies are a big threat to Emirates Airline (Safi 21). This paper is going to analyze Emirates Airline’s business excellence and quality management strategy. The aviation industry is also going to be looked at and in addition, the paper is going to consider competencies and potential sources of competitive advantage for Emirates Airline. The last section is going to present a summary of the discussion and recommendations.
The Aviation Industry
The world aviation industry experienced calamities in the course of the financial crises, with “more than a score of airline bankruptcies, shrinkage in airline networks and service levels and IATA adjusted its estimates for 2009 net losses from US$11 billion” (Safi 7). Within the entire aviation sector, airlines underwent contraction, serious price cuts; lose of employment by workers in the sector.
As on one hand oil prices had been found to control the initial half of the year 2008; on the other hand, the second half of the same year was marked with recession and it brought in a bleak depiction for the financial year 2009/2010 planners. The decreasing demand, devastated consumer confidence and revenues of the airlines reduced.
A reduction of fifteen percent within the world market witnessed altered business patterns and this in turn implied that there was cutting down of the travelling budgets. Basing on the information provided by Emirates Airline; the world aviation industry, confronted with the need to carry out an investment of about one trillion dollars in “new, fuel-efficient aircraft, was confronted with a baking industry reluctant to lend after the new collapse of the finance sector” (Safi 7).
Emirates Airline’s Key Capabilities and Resources, its Competencies and Potential Sources of Competitive Advantage
Emirates Airline undertakes its operations of a business model of its own kind, marked by flexibility. Following this, this company has been able to engage in bringing reasonably priced pioneering products to the market that are exceptional. Flexibility in the company’s operations has made it possible for the management of the organization to come up with the means of dealing with the economic crisis.
Emirates’ business model “supports long haul flights and the firm aims at connecting two points of the globe via its twenty four hours Dubai terminal” (“The Emirates Airline” 1). The model does not boost costly short haul that usually reduces the companies’ earnings. In relative terms, the “long haul” flights are less expensive and this is because of the fewer stopovers, which aircrafts make on their destinations. In addition, the “long haul flights” have been bringing in more profits to the company (“The Emirates Airline” 1).
The rate of recurrence of the long haul flights has caused the company to turn out to gain more and following this, the company has seen it to be pointless to raise the level of fares. In whatever company, pricing defines the competitive advantage of that company. This implies that the success attained by Emirates Airline results from low cost flights.
Moreover, the company has a large number of advisors and innovative and creative managers who undertake their activities “for the best interest of the airline” (“The Emirates Airline” 1). The greatly inventive managers as well assist in producing competitive products, which mostly compete in a successful way with those offered by the rival companies.
The company has also adopted the newest technology, which they use in booking of flights. This has enabled them to increase the level of customer service. The level of client contentment has increased and this is a result of bringing in internet booking as well as improved communication with their clients before they take up flights. A large number of the clients have been in a position of moving from other airline companies such as Singapore Airlines to the now well-known Emirates Airline.
The Emirates Airline Company has as well been fitted with “top-of-the-range flat screens to give the passengers an exotic feel whilst flying aboard the Emirates Airline” (“The Emirates Airline” 1). Advanced technology has been utilized greatly in all aircrafts that Emirate Airlines operates.
The travelers are satisfied with this and are ready to travel in the aircrafts of this company because they will have to enjoy the interesting experience while they are travelling. Furthermore, the company utilizes the U.S. dollar as the regular legal tender. The dollar’s steadiness against other foreign currencies makes sure that this company retains increased gains. In addition, the United States dollar is suitable for all the travelers not considering the nations they come from (“The Emirates Airline” 1).
The company has also various types of airlines, which it operates. This offers its clients an advantage because they make a choice easily about which airline to travel in. Every year, Emirates Airline buys new aircrafts and this makes their airlines “to be relatively new and able to meet the requirements by the Air safety bodies” (“The Emirates Airline” 1).
The company’s aircrafts have not been involved in accidents recently. This contributes greatly towards restoring the passengers’ confidence in the company and this makes the passengers to continue preferring this airlines (“The Emirates Airline” 1).
Considering environmental concerns, Emirates Airline has set up efficiency engines in all of its aircrafts and this ensures that minimal amounts of carbon oxides are released into the atmosphere. This move makes the company’s flights to be environmental friendly. The aircrafts that this company operates can move for one hundred kilometers on just four liters and this makes them to be considered as great fuel savers (“The Emirates Airline” 1).
Emirates Airline’s Business Excellence and Quality Management Strategy
Emirates Airline, as a great organization, “are spanning a portfolio of more than 50 brands and employing over 50,000 employees for over 150 countries”(Safi 13). The commitment that the company has to non-stop improvement in the product is accomplished by the continuing compulsion to undertake implementation of higher efficiencies in all the technical areas.
Efficiencies transform into “cost savings” and operations that are more environmental friendly indicates the company’s business excellence (Safi 13). It is reported that to support the increasing Emirates fleet, the company made plans in 2010 to open “a Technical Facility for maintenance” costing more than five hundred and forty five million dollars (Safi 13).
It was also planned that a paint shop be set up in order to be utilized in repainting the aircraft by applying the latest technology paints which are able to reduce “in-flight drag” (Safi 13). Fresh indicator received was witnessed in the course of the year in, “1000th GE90 engine for Boeing 777 fleet, and 6000th Airbus production aircraft in A 380” (Safi 1313).
Such support makes Emirate to the podium of their own for “securing their future in an efficient way from partnerships such as Boeing, Airbus, and Rolls Royce, it describes the key excellence of the company for the coming challenges” (Safi 13). Moreover, the fresh plan that was put in place to open terminal 3 within the third quarter of the year 2012 for the Dubai International Airport proves to be another fresh level of business excellence (Safi 13).
Safi reports that each year and each month, Emirates have astonishing news regarding their fleet but the company continues setting up this remarkable asset and they put it in track (Safi 8). In the course of the financial year 2009/2010, Emirates “took delivery of eleven Boeing 777s and four Airbus A380s” (Safi 8). This move made their fleet to increase to one hundred and fifty two and one hundred and ninety four “aircraft on order” (Safi 8). The company planned to “take delivery of new aircraft at an average of one per month” (Safi 8).
The company also goes on negotiating with aircraft producers to have more aircrafts. The Airbus A380 is the final symbol of this company’s pioneering character they refer to as ‘superjumbo’. The A380 goes on being the banner on any fresh airport across the globe and these include “Jeddah, Bangkok, Seoul, Toronto, and Paris” (Safi 8). There was addition of these regions to the A380 network, which already encompassed Heathrow, Auckland, and Sydney (Safi 8).
It is also clear that the initiative taken by Emirates, based on “the Oracle E-Business Suite, has integrated the accounting, human resources, procurement, and order management functions across the entire group” (“Emirates Airline set to soar with Oracle” 1).This has made it possible for over nine thousand employees to have access to the main business applications as well as information through the internet.
The company anticipates many measurable business gains from the e-business project it has set up, within and for its “client-and-partnership” departments (“Emirates Airline set to soar with Oracle” 1). All the company’s important information is currently centralized in a single location. This has enabled the company to deal with cross-sectional issues concerning business. The management of the Emirates will have one and full view of the whole company. This will enable the process of making decisions to be fact-based and timely.
Centralization and higher efficiency in the company’s basic business functions is expected to bring about reduced costs of operation leading to higher profitability. Moreover, the new business processes that are streamlined basing on the “Oracle E-Business Suite” are anticipated to bring about higher levels of efficiencies in the entire organization (“Emirates Airline set to soar with Oracle”).
It is pointed out that “the optimization of customer focus, reliability, and efficiency are three of the overarching objectives in the diverse businesses of Emirates Group” (“Emirates Airline set to soar with Oracle” 1). To realize these objectives while managing the company’s fast growth of profitability, the company needed strong technological bases, which are supplied by “Oracle E-Business Suite” in a unique way.
The travel as well as aviation industries are among industries that are most competitive across the globe, and the Emirates Airline has depended for a long time on the greatly advanced technology to assist in operating at the highest service levels (“Emirates Airline set to soar with Oracle” 1).
Among the very important elements in the project was to make sure that the entire company’s Information Technology systems as well as applications would bring and operate together “right out of the box” (“Emirates Airline set to soar with Oracle” 1).
With the fresh e-business infrastructure, this company has the most current and all-inclusive view of several components including the logistical, financial and human components of a variety of its functional units. The information makes it possible for the company to make a response to the fresh opportunities and challenges promptly, and came up with the fresh and improved ways to serve its clients and partners.
Conclusion and Recommendations
The Emirates Airline is a very successful company in the industry. Its success is attributed to the effective strategies that the company has put in place. The company has been effectively capitalizing on available opportunities to with the competition. The company has very high business excellence.
Emirates Airline undertakes its operation of business model of its own kind, marked by flexibility. Following this, this company has been able engage in bringing reasonably priced innovative products to the market, which are exceptional. It has put in place an effective quality management strategy. Although the company is relatively young within the industry as compared to the competitors, its innovative power and good leadership, it has released high growth since its inception.
Since competition in the market is increasing with each coming minute, there is need to keep up with changes and challenges that are continuously occurring in the market. Emirates Airlines need to continue capitalizing on the innovative power it has and also to reach new markets. This will enable it to remain ahead of the competition. The company needs to improve on its total quality management strategy.
So far, the company has done well but it needs to do more. The company needs to put in place very strong technological bases. This will assist the company to realize optimal customer focus, increased dependability, and efficiency of information within the organization. This will eventually lead to a greater competitive advantage for the company.
Works Cited
Emirates Airline set to soar with Oracle E-Business Suite, 2012. Web.
Change management entails transformation of organizations, people or groups from the present to a future desired state. Being an organizational process aimed at improving employees’ attitudes in embracing and accepting total change in their place of work and entire business environment, it involves employees and their daily processes in an organization. Hence, change management basically entails managing processes within an organization.
For instance, before any forms of changes are adopted in an organization, it must first be approved by the relevant management teams. As a matter of fact, it takes time and proper planning for any changes to be executed in an organization and that is why it is referred to as a process. In most cases, change management is primarily concerned with the human resource aspect.
The latter explains why all the changes introduced and approved in an organization are usually done according to the challenges facing human resource as well as the emerging needs as set out in organizational objectives (Hiatt & Creasey 243). Therefore, domains involved in successful management include educational programs to train or improve skills of the human resources within an organization or improvement efforts aimed at boosting production in an organization.
Another aspect normally taken into consideration when implementing change management in the need of containing employee behavior which sometime entails combating their resistance towards proposed changes with the view to aligning them to a strategic and desired direction for the betterment of the organization.
Thirdly, there has always been need for effective communication when implementing change in organizations. For example, all the stakeholders, including employees should be part and parcel of change management process.
Therefore, they should be informed and also be made to take active roles in implementing the very changes. In other words the rationale for change, associated advantages and also all the likely limitations of change plus the associated budgetary expenditures should be made clear to all stakeholders. Hiatt and Creasey (246) observe that all these domains coupled with monitoring, process accomplishment and fine modification automatically lead to success in the change management process.
Vision and objectives
The emirates airline is a passenger airline services flying to numerous destinations globally. Its headquarters are located in the Middle East, specifically in the United Arab Emirates.
The company comprises of airlines flying passengers and cargo to more than one hundred destination across the world (emiratesairlinesonlinebooking.org). With this magnitude of assets and base, it has employed thousands of workers in different fields of the airline industry. Its annual growth rates have sparked the need for more employees and thus improving their yearly results.
According to The Emirate Group (par.1), the Emirates Airline Company has been made strong through its vision and objectives. Its vision is based on building a strong and highly stable team that is keen in decision making with high levels of ambition but with consideration of business ethics as a foundation of success building.
From past statistical evidence and levels of achievement, the Emirates has continued to demonstrate great care for its employees and involved stakeholders for their role in the growth of the company with emphasis on immediate environments and the communities served by the fleet of its airlines.
This is one of its great objectives that have driven growth and encouraged attraction of human resource. Another major objective is to maintain the past and connect it to the future with a view to maintain great service and improve with time signifying the best future in the airline industry.
A supporting objective based on future plans is aimed at making the airline one of the major global players by earning itself a top or front position in making the capital of the Middle East one of the top destination for visiting tourists every year. The latter has been found to be an influential trading hub for business in the world (emiratesgroup.com).
Literature review
Change management with respect to human resource in many airline companies has been directly associated with leadership styles. The type of leadership offered in any organization greatly determines the motivational levels of its employees. Due to this reason, airline companies have been cautious in choosing suitable leaders to run these organizations.
According to Doganis (244), they believe that all activities within the organization are largely determined by the involved leader-activities since all organizational duties are directly delegated to the leader. British airways, once reported that its employee motivational goals were as a result of great leadership skills that were well placed in running the organization. With only eight years in office, employee confidence and financial growth were rapidly attained.
These later led to corporate stability within the business and thus motivated company employees; a factor that led to motivated production inside the firm. The report points out that leadership must involve direct interactions between employees and the leaders for effective communication. Effective communication leads to individual contentment and thus motivates employees in duty discharge.
A similar study done on Virgin Atlantic revealed that there was great motivation within the company. Several reasons were attributed to the fact that the corporation had clearly stipulated programs aimed at boosting the morale of its employees. To begin with, it was found out that leadership confidence was crucial in running the organization.
Due to excellent leadership skills such as how employees were being treated in terms of remuneration and general working conditions, the working environment really improved. Secondly, many company employees expressed unwillingness in moving away, citing satisfaction resulting from the above factors coupled with effective communication with Virgin Atlantic (Doganis 290).
Rationale
Due to the fact that the company has enormous potential to improve its profitability, it raised a lot of hope in the strategies in the strategies that are currently being implanted in the organization. The main focus is on the robust development of human resource department alongside making sure that its clientele base if firmly in place through satisfactory service provision. As a result, there is implication of change management with specific regard to motivation within the organization.
It is thus essential to examine the company’s strategic change management practices with respect to employee and customer motivation thus confidence within the company; a factor that has made it overtake other airlines in terms of flights to the Middle East region as well as the becoming known as one of the world’s most famous operating passenger and cargo airlines.
Methodology
Research design
The Emirates, being a multinational company with diversities in population representations, has numerous employees and customers from regions all over the world. With this kind of diversity, designation of suitable research design for carrying out research study in understanding how motivation is employed to keep employees energetic and faithful within the industry can prove to be a tedious task.
Therefore, the research design to be applied must take into consideration the number of employees in the organization, regional or continental representations and major international airports and offices of contacts should information from samples be needed. This will mainly help in attaining primary data for analysis.
Hence, before choosing the correct methodology, it is of great importance put these factors into consideration. This research study will therefore employ these elements of change that may affect the overall data analysis, discussions and conclusions.
Due to complexities in airline ethics, required data as well as the costs involved in carrying out such a research, a qualitative research design has been preferred for the sake of efficiency and effectiveness. Emphasis has been laid on descriptive research method for enlightenment of the required information.
This research design is highly suitable for this study because it brings to light the required information in a form that can be easily understood and analyzed. In order to explain the reasons behind employee motivation within the company, a similar method will also be of great help.
Since this research is only concerned with the explanations behind maintenance of employee and motivation management within The Emirates airlines, taking a quantitative approach might provide inappropriate results which will also be unsuitable for conclusion-drawing in regards to motivation management within this airline company.
Therefore, basing on reasons such as the cost of carrying out the study, location of research elements, regional representation and company location, a qualitative approach has been preferred in this study (Creswell 70).
Data collection
Data collection plays a very important role in implementing a research question. Having chosen a qualitative design and approach in methodology, it is also important to consider a mode of data collection. In this regard, survey becomes the most preferred method of data collection due to several reasons.
Having considered this, the choice of methodology is of the great essence. As already mentioned above, this research study will assume the descriptive design path for study and report writing purposes. As a matter of fact, this is important in attaining the required information from the study. Since individual motivation and change associated with it can only be explained by internal employees of the company, taking a case study may proof to be futile.
Naturalistic observation is also something close to impossible and if not, serious time and money consuming. Therefore it is of great advantage that this descriptive research design employs survey as the method of data collection. Survey will thus involve questionnaire for reasons of its affordability and time saving attributes.
Questionnaire – interview questions
The following are some of the likely questions that may be contained in the questionnaire. It is imperative to note that the proposed questions may be changed accordingly in order to match the expected needs of the research study.
Are you contented working at The Emirates?
If you were offered a chance to move on, would you immediately opt for another employer in the airline industry? Explain your choice.
What makes you comfortable or uncomfortable at The Emirates?
Do you feel like coming to work another day at The Emirates?
Do you enjoy working at The Emirates?
Data analysis
Data analysis is one of the critical steps taken in materializing the research question. Under analysis section, it is vital to underscore the fact that evidence is brought to light and further conclusions can be made once data analysis has revealed the required premises. A suitable data analysis method to be employed in this research is obviously pre-determined by the method of research design and available data.
Since this study presumed a qualitative research model with non numerical data arising from questions in the questionnaire, a statistical approach has been recommended. The use of statistical software would be of great help in reducing the amounts of time that would have been consumed in manually performing the involved calculations, hence recommendation for SPSS. Data acquired from the survey questionnaires shall be run through the SPSS software package for analysis and discussion.
SPSS takes preference in data analysis in this case due to various reasons. To begin with, SPSS saves a lot of time when used to analyze large volumes of data. Computation of required indexes is automatically done and results are displayed immediately for immediate analysis.
Secondly, the package is readily available and more business and social sciences are laying recommendations in the use of the package for data analysis. This thus makes it a mandatory for students pursuing courses in business degrees and social sciences to use this statistical package in analysis form data.
Thirdly, statistical approach provides ground for wider discussions. For instance, discussions in reasons of employee contentment at the company can be broadened at length, giving wider perception for contentment, while a second item (willingness to remain at Emirates) also presents wider ground for discussion.
With such broad analysis, accurate discussion can be done and thus lead to drawing of accurate conclusions. Therefore for particular and highly accurate conclusions and recommendations, a statistical approach will be invaluable in analyzing the data collected during this research.
Findings
Contentment
90% of all interviewees affirmed contentment at the emirates. 5% did not respond and 5% were not contented.
Figure 1: Contentment level of employees (%)
Loyalty level
95% of all interviewees reiterated that they would not move away from the Emirates while the remaining 5 % said they would seek other employment opportunities.
Figure 2: Loyalty level
Reason for working for the airline company
60% of interviewees cited better pay as the reason why they were comfortable working for the Emirates, 30% cited leadership excellence while 10% cited home schedule accommodations.
80% of all the interviewees said they were willing to come to work the next day while 10% said they were not and 10% did not respond.
60% of all interviewees said they enjoyed working at the emirates, 25% confirmed they were not while15% did not respond.
Challenges encountered
Challenges faced
How they were solved
Some of the forms submitted were not received back
Both online and offline surveys were carried out to reduce the level of risk
Lack of cooperation from employees therefore hindering the thoroughness of the study
A bigger number of employees were surveyed in order to meet the targeted number of people in the research
Language barrier during the interviews
The survey made use of English-Arabic translators in cases where the interviewees were not very well conversant with English
Discussion
From the data obtained, it is evident that majority of employees at the emirates are contented working there. The five percent of employees raise concern that there is need for further studies on why they are not contented. From the response of willingness to continue working at the emirates, it is evident that most employees would not move away from the company, implying they are motivated to continue working for the organization.
In addition, majority of employees expressed willingness to continue working at the emirates. All these results give an implication of motivation within the company. Continued and sustained motivation means that the company is conscientious of change management. With sustained levels of contentment, comfort, willingness and enjoyment, the company is efficient in change management.
Recommendations, risks ad effects
Recommendations
Risks
Effects
Regular research studies on the effect of change
Costly and time consuming
It will establish whether new changes introduced have positive outcomes
Use of detailed questionnaires in research studies
May be ambiguous and cumbersome to analyze
More information will be obtained per each survey
Poor or inaccurate data analysis and results
Thoroughness of research study. Ensures fair representation of the reality within the organization
Diagnose the company’s leadership style especially at the top management level
Complicates management and leadership structure in an organization
May lead to bureaucracy and high-handedness at the level of management
From the research study, it is evident that data obtained partially explored change management. It is highly recommended that exhaustive questionnaires be applied for clearance of doubt. For instance, lack of contentment at The Emirates was not substantially accounted for. Secondly, The Emirates should regularly carry out research to find out whether new changes introduced into the system improved the motivation levels of its employees.
Conclusion
These results concur with previous researches done on change management in regards to motivation. Previous researches indicated that change management with respect to motivation was as a result of good leadership within an organization- a statement which this piece of research confirms. Secondly, better working conditions coupled with better pay were also responsible for continual motivation and enjoyment, thus source of motivation.
On the contrary, this research concludes that out of all the possible reasons given for discontent, home and cultural proximities were absent from previous researches. This indicates that this research study presents relatively new findings in managing change within organizations. Indeed, globalization has made it possible to work in any location across the world but total willingness should be sought first before accepting employment contract.
Works Cited
Creswell, John. Research design: Qualitative & quantitative approaches. New York: Sage Publications, 1994. Print.
Doganis, Rigas. Flying off course: The economics of international airlines, New York: Routledge, 2003. Print.
Emirates Airlines is a model of leadership and management, a primary reason why this should be the focus for a study on organizational culture.
It has attracted the attention of researchers because despite its being a business owned by an authoritarian regime, its people are not corrupted, but more focused on contributing to the organization’s success and expanding its fleet, which is composed of eco-friendly airplanes.
This essay is about Emirates Airlines, a part of the Emirates Airlines Group, composed of about 50 divisions or companies, and based in the United Arab Emirates.
The Emirates Group has shown business skills when it tapped the east and west resources of the world, and has benefited from the recent economic boom in the Asian continent. It closely caters to the fastest growing economies of the world, namely China and India.
This essay will focus on leadership and organizational culture, along with the problems and challenges the airline has encountered. This organization has a multi-cultural workforce who come from many parts of the Middle East and of the world. Cultural integration is one of the major problems when it comes to human resource management.
Where there are many constraints and environmental factors to deal with, it seems that business, in such conditions, cannot be largely successful. However, Emirates has been experiencing successes one after another, in terms of the many challenges airlines encounter, in particular economic crises, high oil prices, and so on.
Culture is what the people practice and believe, which has become the foundation for all the other activities and policies the organization has to follow. Organizational culture refers to the norms and values the owners have implanted on the organization. How Emirates dealt with a multicultural workforce is the main thrust of this essay.
Introduction
The government of Dubai, owners of Emirates Airlines, claims that their company is the largest airline in the world, serving millions of customers with thousands of employees who are multi-cultural and coming from the different parts of the world.
We have chosen this expanding company in the UAE for our case study because of this seeming impossibility in providing a pleasant work environment, at the same time the airline has to provide customer satisfaction and attain profits.
In 2010, Emirates served 5.72 million customers, and this must have doubled in 2015. Sarabdeen, El-Rakhawy and Khan (2011), who conducted a study on the airline industry in the Middle East, argue that Emirates is a ‘people’ company, which means the firm is employee- and customer-focus.
Since it is a people company, it must have an effective human resource management (HRM) and the organization must know how to deal with a multi-cultural workforce.
Leadership and company culture have paved the way for organizational achievements. Its workforce is a source of competitive advantage, at the same time a challenge considering that it is multicultural. The labor force has reached 28,686 employees, who come from 160 countries (Emirates Group Careers 2015).
It shows that it is a ‘people’ organization and considers its employees as its most valued asset (Sarabdeen, El-Rakhawy, & Khan 2011).
Emirates has built the reputation of being ‘people focused’ employer because of its significant HRM practices. It has a level of selection method to produce ‘a crème of the crop’ labor force. Applicants undergo a rigid training and development.
Emirates also focuses on CSR programs and concerns, which benefit not only the community, but the employees and the customers.
Business organizations in the UAE accumulate only about 10 percent of their operating expenses to pay their employees, while others provide as much as 40 percent of operating expenses for salaries and allowances. In other words, there is no problem with cost pertaining to hiring expatriates.
The problem lies in the multi-cultural background of employees (Nataraja & Al-Aali 2011).
How do large airline organizations manage their employees despite the many constraints in the industry? Has Emirates combined corporate social responsibility (ethics and employee motivation) and profits?
We will focus on the effective leadership and organizational culture as the underlying factors and emphasis why the company is a success story. In our investigation, we draw primary data and information from the company’s website and from the employees.
Emirates’ organizational structure
Because of technology and innovations in organizational structure, the world has become flat. Other authors call this the age of ‘the global village’. Emirates is affected by the ‘flattening’ of the world.
It has a narrow ownership structure, wherein the airline President oversees the entire aviation business and reports to the executive Vice Chairman of the whole Group. The President has other responsibilities like taking charge of the central carrier operation, to include the freight business, airport services, and the hotel and holidays business.
This flat structure, which permits clear communication and rapid decision, has contributed to its growth and development (Nataraja & Al-Aali 2011). (See appendix for organizational chart of Emirates Airlines.)
Changes in management and constant innovation result in team-based structure. A study was conducted which found that about 60 percent of firms have used teams to respond to the changes caused by globalization and technology innovations (Lawler et al., cited in Wu, Wang, & Tsai, 2010).
Because of team work, jobs are accomplished faster than before the advent of the information age. A team-based structure can help provide leadership effectiveness because it allows vertical and horizontal interactions, in which team leaders and members can directly communicate with each other and with top management at the same time.
This means they communicate without the traditional communications protocol. Decisions are made right away without much hustles. Management encourages the formation of teams, and managers are always there to respond to the needs of the teams.
Svensson and Wood (2005) discussed leadership effectiveness using different models. Leadership effectiveness in management and business is changing in various aspects. It is a continuous process. These dynamics and continuity depend on contextual considerations in the marketplace and society, and other aspects affected by time.
Leadership effectiveness relies on the accuracy of these considerations. Contextual precision is about a leader’s contextual perception, whether he/she is right or wrong in the marketplace or in the community.
On the other hand, ‘timely precision’ relates to the leadership’s timely perception in the business and societal environments at a given point in time (Svensson & Wood 2005).
The story behind Emirates
We made contact with Emirates’ website administrator, who was kind enough to accommodate us and provide valuable information for this study. Direct communication with this large organization is possible. The website provides customer interaction, wherein we can ask questions and suggest ideas about people and business.
The administrator informed us that all of these are regular features of the company and that they are continuing to improve their service with customers’ suggestions. People focus means to be constantly in touch with customers, asking their ideas and opinion and how they can be served better.
They provided us with downloadable information regarding their organization, including their programs and policies. The company website provides news and stories about the airline and the Emirates Group, and their various services, including corporate social responsibility and HRM practices like training and development.
What are the values that Emirates employees and managers learn from and practice in the organization? This was a question we posed to the organization’s website. There might be self-centric information that they provided this researcher, but we tried to analyze the details and compare this with data coming from the employees themselves.
The results became a part of a ‘folder’ of evidence to support the contention that organizational culture and good leadership result in organizational achievements and good performance.
Emirates has abundant human capital, a multi-cultural workforce, which does not demand higher salaries, a fact that is different with others from the United States and the UK in terms of labor costs.
The employees’ regular training and development through their program, Plateau Learning Management System, empowers the workforce by providing additional knowledge and motivating them to work hard for the organization’s success.
Salaries and benefits are one of the highest in the region, and allowances and bonuses are given on an equal and fair method (Sarabdeen, El-Rakhawy, & Khan 2011).
Management improves organizational knowledge by conducting training and development. Emirates provides effective customer relationship management (CRM) through its interactive website. Customers of the various services are well informed.
Corporate social responsibility (CSR)
The company has applied CSR by focusing on eco-friendly measures to achieve fewer carbon footprint. Emirates’ environmental leadership is stressed on their website. The Chairman’s message about environmental sustainability is a CSR concern that cannot be ignored.
The Emirates Group recognises its responsibility to protect the environment (Emirates: the Emirates Group commitment to acting sustainably 2015). The company aims to reduce environmental abuse by shortening flight and constant planning and discussion on how to provide comfort to passengers.
Carbon emission has been reduced by not burning jet fuel discriminately.
The company’s leadership has long promoted and enhanced CSR principles. CSR objectives focus on environmental sustainability and reducing carbon emission. The problem is that jet fuel continues to emit carbon, which exacerbates climate change.
How can a company promote CSR but at the same time continue to abuse the environment through carbon emission produced by jet fuel?
They can only help preserve the environment if they stop business because jets cannot fly without fuel. The fact remains that business and commerce need air transportation to transport cargo and people from one place to the other side of the globe as fast as they can.
Emirates has addressed the problem of jet fuel emission. Environmental impact due to fuel and engine-related emissions can be reduced by providing environmentally optimum airplanes.
Cultural diversity
Cultural diversity is an important aspect of international or global organizations, and has become a significant concern among firms, research institutions and policy makers (Sultana et al. 2014).
Contemporary researchers have regarded cultural diversity as a significant distinction between firms, ‘a description that covers a wide range of obvious qualities and hidden capabilities’ (Ivancevich & Gilbert; Nkomo & Cox, cited in Sultana et al., 2014, p. 134).
To have a real meaning of cultural diversity, it is significant to understand first the concept of culture.
Adler (cited in Sultana et al., 2014, p. 134) defines culture as ‘an acquired behavioural aspect assigned to a person and his group by which the individual is identified, expressed and transmitted through symbols, distinguishing mark, its values and beliefs.’
Culture includes a wealth of principles and sentiments which, once articulated, can be put side by side with those from other cultures and provides arguments for positive learning (Sultana et al. 2014).
Organizations that develop the virtues of cultural diversity are destined to better put together the global and active labor market controlled by a large multiethnic and multicultural power of that particular segment (Jain & Verma, cited in Sultana et al., 2014).
The idea behind ‘managing diversity in the workforce’ has become popular of late because of the realization of the method of ‘equal opportunities’ for all (Sultana et al. 2014, p. 134). Cultural diversity in the workplace is advantageous for organizations because of the cohabitation of workers from different cultural milieus.
This cultural diversity needs a kind of management in which its organizational culture recognizes employee advancement in their careers unobstructed by ‘gender, race, nationality, religion,’ which are insignificant to performance (Bryan, cited in Sultana et al., 2014, p. 134).
The culture also respects the rights of everyone, and no group is more privileged than the others (Torres & Brussels, cited in Sultana et al., p. 134).
Sultana et al. (2014) identified five key dimensions of cultural diversity to enable firms attain competitive advantages with ‘creativity, innovation, image and marketing, higher productivity and competences of work force in a systematic work environment’ (p. 139).
Managing cultural diversity positively influences organizational factors, such as human capital and innovation capital. This form of management can also impact positively on customer equity and shareholders. A systematic cultural diversity management also results in the firm’s competitiveness.
Airline Innovation
Emirates’ success formula is provision of innovative and creative ideas in looking for opportunities and their way of solving problems.
Its positive culture fosters new ideas, often not in line with current industry’s view, as can be perceived in their unique services like personal entertainment systems in all seats, private first-class suites, use of mobile phones in the plane, and their unique ‘SmartLanding and SmartRunway safety solutions’.
Nataraja and Al-Aali (2011, p. 473) indicated that, ‘Emirates believes in doing things that seem right and leaving things that functionally do not quite fit.’ We have to note here that this cannot be accomplished by management alone, but by a multi-diverse workforce.
A survey was conducted in 2010 on seven major and long-distance airlines, including Emirates, Air France, British Airways, Etihad Airways, Qatar Airways, and a range of others.
The aim was to measure the airlines quality service in terms of customer experience, all the way from flight booking up to final baggage claim. Emirates emerged as the top in the list as the best service provider (Nataraja & Al-Aali, 2011).
Management conducts workforce planning and employee development. The workforce is effective because of this. Planning is the initial stage of training and development, which is an important aspect of human resource management. One important feature of the airline’s branding is leader support.
They regard employees as important to the success of the organisation (Nataraja & Al-Aali, 2011).
Practically, we can explain Emirates’ successes by ideas in the literature that suggest the association between achievements and effective leadership in the organization. It is the result of management accuracy, timing and organizational culture, which also relates to common practices within the organization.
When there is precision, there are positive business results (Svensoon & Wood 2010).
The company’s programs and policies emphasize leadership, customer focus, and corporate social responsibility, which is about environmental sustainability. Although, these features cover several topics in organizational behaviour, we focused on leadership and organizational culture as the foundation for the company’s success.
Emirates’ leadership
What do we mean when we say leadership and organizational culture are the foundation of organizational success? Does this mean that the professional managers are responsible for Emirates’ successes?
The emphasis for this analysis is the leadership team of Emirates. This includes the owners, the top management, the middle-level managers, and the people behind this leadership.
Emirates is run by a strong and steady leadership team that creates effective and calculated decision-making. Their leadership traits include ‘business ethics and customer focus,’ the foundation of the airline’s success (Nataraja & Al-Aali 2011, p. 473).
The airline is owned by the ruling family of Al-Maktoum, who had the vision in making Dubai the envy of the world. Another important factor is the blending of an excellent geographic location and an effective management, put together by an ambitious master plan set by an ambitious personality (Nataraja & Al-Aali 2010).
Leadership and employee focus are clearly defined in Emirates. Sarwar (2013, p. 10) defined an ‘ethically effective leadership,’ which is different from the simple term, effective leadership. Anyone can be a leader, but has to be ethically responsible for his/her actions with the people around them.
If we refer to the leaders in a business company, they have to be ethically responsible with the employees of the company. This goes with the question of accountability, which must not be taken for granted.
Leadership is different from management, but to be effective in business, managers must be good leaders. No organization can be a success unless it has an effective leadership, supported by a good management team. Leaders also depend on their teams and team members who will help in carrying out plans and policies.
Theories state that leadership causes, or motivates, an organization to become successful. Management has a role on these theories (Svensson and Wood, 2005). There are other theories that relate leadership effectiveness and organizational achievements.
Leadership is defined according to their categories. Bass (Svensson and Wood, 2005) categorized these definitions as: the focal point of group processes; a matter of personality; a matter of inducing compliance; the use of influence; the use of limited discretionary influence; a way of behaviour, and a way of persuasion.
Transformational leadership
This is a different type of leadership, which can also provide organizational achievements. The leader uses charisma in motivating the members to act selflessly for the attainment of organizational objectives. It raises the follower’s degree of maturity for him/her to achieve and work for others and the organization (Erkutlu 2008).
Transformational leadership emphasizes charisma and motivation as underlying factors for members to work, participate, and become leaders themselves. Some researchers emphasized the significance of ‘behavioural integrity’ in creating trust between leader and follower as a core aspect of transformational leadership.
Transformational leadership is effective through ‘impression management’ techniques, and one example is ‘exemplification,’ which is similar to ‘behavioural integrity’ (Pounder 2001, p. 282). Common qualities include providing attitude to others, and giving risks and personal sacrifices to attain organizational goals.
Gardner and Cleavenger (Pounder, p. 282) suggested ‘ingratiation’ as an example of impression management technique related with transformation leadership.
Organizational culture
Organization culture is ‘a shared meaning held by members’ that differentiates the organization from the others (Robbins 2001, p. 508). Organizational culture has something to do with Emirates’ success. The values and norms of the founders and the people are well-established that they lead to organizational success (Wu, Wang, & Tsai, 2010).
When effective leadership is emphasized within the organization, i.e. employees and managers focus on management timing and accuracy, and they observe and practice this to the point that it becomes a part of organizational culture, there will be effective leadership outcomes and organizational achievement.
Lee and Tsai (cited in Wu, Wang, & Tsai, 2010) argue that organizational cultures which foster organizational learning, communication and sharing between group members, and collaboration can lead to organizational performance. Organizational culture can provide a clear way for the future.
Organizational culture is the beginning of ‘significant competitive advantage’ (Fortado & Fadil 2012, p. 283). Authors and theorists argue that a strong culture is associated with organizational performance. Leaders can develop organizational culture and use this in implementing programs to attain competitive advantage.
Fortado and Fadil (2012) analyzed the different faces of organizational culture. In 1920s to 1960s, a study was conducted on a phenomenon in the industrial field research known as human relations.
At the Western Electric Hawthorne plant, the researchers launched the human relations field movement (Fortado & Fadil, p. 284), wherein they focused on sociological concepts and methods. This group became the first to call the term ‘organizational culture’ (Fortado & Fadil, p. 284).
The researchers conducted the study in the scientific management tradition, wherein they made use of the test group and control group. The Hawthorne study conducted the initial lighting experiment, in which they compared the production in the two rooms as the level of lighting was varied in the test room.
As production in the test room was increased, production in both rooms also increased. Then, lighting was also reduced in the test room, and production in the test room and in the control room rose.
There were inconclusive results to this study, although it was the beginning of more studies on the subject of human relations and organizational culture.
The study of Elton Mayo (Fortado & Fadil, 2012) and colleagues made some progress. The experimenters focused their attention on the Relay Assembly Test Room, wherein they studied the impact of rest period in between work, snacks, length of work hours and length of work week during production.
Improvements in working conditions increased production, but when these improvements were reduced, the level of production was maintained contrary to the researchers’ expectations.
The researchers made some inductive research and actual interviewing. They also conducted the Bank Wiring Observation Room experiment. Their study revealed that there were important unknown features of the experiment. Their inductive research found that the existing employee feelings played a significant role.
Another important factor was social situation at work, which influenced the employees’ sentiments. After this study, the researchers found how a change could develop and be understood as such.
Fortado and Fadil (2012, p. 284) concluded that, ‘The meaning of a change would be as important, if not more important, than the substance of the change.’
The Hawthorne researchers also observed that instead of thinking as individuals, the members should contribute and think along with the group. In the experiment, there was a formal organization, which had a shadow counterpart known as the ‘informal organization’. The employees discussed their feelings, frustrations, and fears.
This increased the morale of the group and a bond was formed among the members, in which they began thinking as a group or a team.
They were motivated to work with each other even if there was no need of doing so. Shared sentiments were found on employees not working too fast or too slow, not revealing to managers about actions that would hurt peers. These practices and norms were given by way of verbal demands, taunting, name calling, isolation, and binging.
The researchers concluded that there were pragmatic reasons for the workers’ actions. They argued that if managers were placed in the same social situation as their workers, they would do the same as the workers did.
Barnard (cited in Fortado & Fadil, 2012) provides theories about how informal association always comes first after formal organization. When a manager provides formal control, the informal association simply adjusts.
These formal and informal associations are closely related and one cannot exist without the other, or they are ‘symbiotically intertwined’ (Barnard, cited in Fortado & Fadil, 2012, p. 285).
Organizations are like living organisms because they work according to how living organisms operate. The different parts of the system in the organization are interrelated in complicated ways.
Changes in one area of the system will affect the other parts of the system. The initial state of affairs matters when a distraction occurs. A calm condition might have a disturbance, but it can be rekindled by the same disturbance in an agitated state.
In the 1960s, Geert Hofstede studied culture, in which he referred to it as the unwritten knowledge ‘with rules of the social game’ (Hofstede, Hofstede, & Mikov 2010, p. 4). The values children learn at home until they reach the age of ten form a culture that is so deep, and they become ‘the software of the mind,’ in the words of Hofstede.
The software becomes the basis for the social construct under the tutelage of adults around the individual.
Values are affected by environmental factors, such as rituals, symbols, heroes, and so on.
In a study of IBM employees, Hofstede identified the cultural dimensions (power distance, collectivism against individualism, femininity against masculinity, and uncertainty avoidance), which became the basis for other studies on culture and organizations. Hofstede’s study became a pioneering work in the subject of organizational culture.
How multicultural issues were resolved
In the context of Emirates Airlines, organizational culture has been formed ever since the owners, members of the Royal family of Dubai, founded the organization. The owners emphasized the value of people and customers. One of the significant aspects of valuing their employees is the selection process.
They recruit the best people qualified in the field, and once they are selected, turnover is very low, which means they stay up to retirement. This is very important in building a workforce, as it has positive results for the organization.
Organizational culture played a significant role in providing an effective leadership; but it can also be said that leadership was the key to a ‘progressive’ organizational culture, paving the way for a successful organization.
Nataraja and Al-Aali (2011) added that business ethics, customer focus, and brand awareness of Emirates through sponsorship of sports and games, caring for their employees and stakeholders, as well as the environment and the communities Emirates serve made the company a success and will provide direction for the future.
The survey research
We conducted survey research on the multicultural employees of Emirates. These were the survey questions.
What is your degree of satisfaction with Emirates?
The team is led by a responsible leader.
Leadership fosters performance and good behaviour.
The leader is effective.
There is effective communication.
There is flexibility among leaders and members.
The company is people oriented.
Management is responsive to the needs of employees and customers.
Customers and employees are first in the mind of management.
You undergo regular training and development.
You feel motivated in the team.
You have independence in your job.
You can suggest your ideas and opinion.
You have promotion, development and career advancement.
You find yourself twenty or thirty years in the company, or until retirement.
You love your work.
You find fulfilment in your job.
There is work-life balance.
Management is concerned of your personal problems.
You are left alone in your job.
You have power as member of the team.
You feel satisfaction as part of the team.
You will tell others about your job.
You will convince qualified friends to be a part of your company.
You feel creative as part of the team.
You rate your company as the best company.
The employee-participants were asked to rate their responses within the five-point Likert scale: ‘strongly disagree,’ ‘disagree,’ ‘neutral,’ ‘agree,’ and ‘strongly agree’.
There were five variables or themes taken from the questions in the survey. It can be concluded here that of all the variables, leadership had the greatest impact, 0.81%. This was followed by company aspiration and motivation. Teamwork was also quite high.
The variable organizational support garnered 0.69%. All the other variables had positive impact on employees.
Conclusion
This essay is about organizational culture and leadership, and the multi-cultural background of Emirates’ workforce. Emirates has a unique organizational culture and is heavily influenced by globalization. Multiculturalism is a common feature of globalization.
In the primary research, good leadership and motivation of employees emerged as intervening variables to deal with multiculturalism. Teamwork, organizational support and company aspiration were outcomes of leadership and motivation.
Recommendation
Emirates employees learned the art of good human interaction. The values and norms introduced by the owners of Emirates formed part of the organizational culture.
Organizations should cultivate organizational cultures that must be imbued with ethical standards and leadership traits because this will influence employee behavior and will result in organizational performance.
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The firms selected for this analysis are Al Baik, Almarai, and Emirates Airlines. Al Baik is a fast-food restaurant chain that operates 51 branded outlets in strategic city locations across Saudi Arabia (Al Baik, 2020). Its main products are the proprietary “broasted” chicken, shrimp, and spice blends. Shakour AbuGhazalah founded the first restaurant in 1974 in Jeddah, and currently, Al Baik is the third-largest brand with a market share of 5.7% (Al Baik, 2020). The company’s mission is to provide a satisfying experience to its customers craving for high-quality dining experience and service and a secure environment. Al Baik works with different suppliers and franchisees to deliver high value for customers.
Almarai was incorporated as a joint-stock company in 2005. This Riyadh-based firm operates in the food and beverage industry through its branded dairy products. As the world’s largest vertically integrated organization, Almarai markets fresh and preserved milk, juices, yogurt, laban, cheddar, and butter in the Arabian Peninsula, where it enjoys a 28% market share (Almarai, 2018). Prince Sultan bin Mohammed founded Almarai in 1977 to meet the growing demand for dairy products. The company currently operates six dairy farms and multiple processing plants with about 674-million-liter production capacity (Almarai, 2019). Its growth strategy is founded on organic products, diversification into promising brands, and expansion to new markets. Almarai positions itself as a market leader in dairy farming, processing, and distribution.
Emirates Airlines is a dominant player in the air transport industry in the Middle East region and beyond. The Dubai government-owned airline was founded in 1985 as The Emirates Group’s subsidiary with two leased planes (The Emirates Group, 2020). The company’s core operations include aircraft maintenance, ticketing, airport services, and ground handling. Emirates Airline operates in 155 destinations in over 80 countries globally, with the Dubai International Airport as its central hub (The Emirates Group, 2020). Its supply chain involves different fuel suppliers, aircraft, in-flight entertainment systems, and food and catering services.
Purchasing Issues
Effective supply chain management (SCM) is a critical source of competitive advantages for firms. Purchasing is an SCM element linking the business and its suppliers. It includes vendor selection, contract negotiation, and procurement of the supplies needed to produce products for the market (Stevenson, 2018). Typical purchasing issues relate to evaluating potential suppliers to ensure the quality, reliability, and cost-effectiveness of the materials. Additionally, inspecting the goods delivered to ensure that they support organizational needs is important.
Al Baik sources its chicken from potential suppliers, primarily from Brazil, meeting high-quality standards. Al Baik’s supplier evaluation is based on Saudi specifications, and international quality standards for rearing, slaughtering, refrigerating, and shipping chicken would ensure safety (Al Baik, 2020). The main issue is that these guidelines may differ between jurisdictions, affecting the restaurant’s ability to provide consistent quality. Suppliers can also use in-house standards in addition to international specifications. Further, shipments are subjected to microbiological and chemical testing in Saudi Food and Drug Authority-approved labs to ascertain their quality before being cleared for use. Therefore, while the inspections guarantee safety and quality, timely delivery and reliability of the supplies are affected at Al Baik.
In contrast, Almarai uses vertical integration besides joint ventures and mergers to enhance supply chain (SC) synergies. Among its recent acquisitions is Hail Agricultural Development Company, a fodder producer, to support its procurement function (Singh, 2016). The acquisition of specialized suppliers ensures product quality, safety, and freshness. Although this approach has streamlined the supply chain, price alignment issues and unstandardized procurement policies remain outstanding. For Emirates, the servicing of planes poses some purchasing risks. The spare part suppliers are located in Europe and America, which means that the components are bought in dollars or euros. Fluctuations in the exchange rate can impact costs, affecting Emirates operations. Additionally, without forecasting the requirements, delivery delays may arise.
Supply Issues
The supply element of the SCM comprises multiple suppliers providing different materials and services. According to Stevenson (2018), effective coordination of these actors and monitoring quality, timely delivery, ensuring sustainable practices, and managing supplier relations contributes to overall SC effectiveness. Al Baik engages the Latin American Islamic Council to ensure its chicken suppliers abroad (Brazil) adhere to Halal slaughtering and equipment requirements. However, coordinating compliance and close supervision abroad may be costly, and the local supply of plastic bags, spoons, and plates is unsustainable given their environmental impact. In contrast, Almarai is a vertically integrated company; thus, it can control quality, sustainability goals, and delivery schedules (Almarai, 2018). Because the firm has a strong influence over production processes, it can mitigate procurement risks and ensure optimal inventory. In comparison, Emirates’s suppliers (Boeing and Airbus) sign Product Supply Agreements to guarantee high-quality components and timely delivery (Al Saed et al., 2020). However, fluctuations in fuel prices and maintaining the inventory of its many suppliers impact the supply portion of its SC.
Logistics
Inventory decisions depend on logistics, and therefore, information sharing with suppliers is important. The location of processing plants impacts delivery time and cost (Stevenson, 2018). Inbound and outbound logistics for Al Baik are mostly convenient since most inputs (wheat, eggs, and beef) are sourced locally, and no intermediaries are involved in distribution (branded outlets). However, chicken is procured from Brazil, which leads to high shipping costs (Al Baik, 2020). Additionally, rejected substandard shipments are be returned to overseas suppliers. In contrast, Almarai’s logistics operations use third-party operators to transport products to 83 depots in five countries in the Middle East (Almarai, 2019). Its fuel efficiency initiatives, such as the engine idling program, have reduced shipping costs to and from farms, processing plants, and outlets. Emirates has a hybrid logistics strategy with materials transported via air and road. Efficiency is achieved by locating its facilities within its Dubai central hub. For cargo services, its emphasis is on economies of scale, which are dependent on demand.
Information Systems
Advanced information technologies are key sources of supply chain efficiency and strategic advantages. According to Kakhki and Gargeya (2019), IT systems are designed to support informational processing capabilities and SC decisions to create value for customers. Al Baik’s logistical operations involve limited use of information systems. Home deliveries involve third parties not linked to Al Baik. In contrast, Almarai deployed an enterprise resource planning (ERP) system in 2002 to support its logistical operations (Singh, 2016). The ERP contains control features, each dedicated to its operational units. Emirates also uses information systems for inventory and reservation management. As a result, the company is highly responsive to customer needs and enjoys operational efficiency.
Quality
Consistently meeting customer needs or preferences is a critical success factor. The main product quality features aligned to consumer expectations include superior performance, aesthetics, dependable performance, and durability (Stevenson, 2018). Al Baik is committed to quality, and its partners (chicken suppliers) must deliver high-quality service and tasty food. Almarai adopted quality assurance systems to ensure the best production practices. Periodic internal audits of its farms and processing plants to ensure consistent standards. Additionally, the company’s dairy farms were the first ones in the Gulf region to receive ISO 9001 certification in 2003 (Almarai, 2018). In contrast, Emirates ensures service quality through flight scheduling systems that avoid delays, baggage tracking, online booking, and in-flight entertainment.
Customer Service
Al Baik targets different Saudi market segments with its broasted chicken and sauce. The restaurant chain provides high-quality, affordable food “served fast and courteously in a clean, inviting environment” (Al Baik, 2020, para. 4). Thus, it is committed to offering high customer value through its branded products and outlets. In contrast, Almarai delivers healthier food options, leveraging its sales expertise, farming, and processing technologies, and integrated supply chain to identify and meet consumer needs. Similarly, providing quality customer service is central to Emirates’ operations. Online booking and check-in services, baggage collection from a traveler’s home, onboard entertainment systems, and dedicated lounges for business and first-class customers are meant to enrich the travel experience and return purchases.
Suggested Improvements
Vertical integration with suppliers would help Al Baik and Emirates minimize supply chain risks such as delayed input deliveries and stock-outs. Emirates can form strategic partnerships with jet fuel suppliers to avoid costly SC disruptions related to price fluctuations. For Al Baik, establishing firm-owned farms in Saudi Arabia would lead to logistical efficiency gains and ensure compliance with Halal standards. In-house expertise in aircraft maintenance and component manufacturing would also strengthen Emirates’ competitive position. Almarai should adopt standardized procurement practices for newly acquired companies across the Gulf region. Alternatively, a centralized SCM function would ensure consistent quality standards for its products.
Conclusion
Supply chain management is an important business operation that ensures adequate inputs to meet demand. The three Saudi-based companies have adopted strategies to streamline their SCs and attain cost advantages and efficiency gains. Optimized procurement processes, logistics, quality, and customer service contribute to efficient production and delivery of products. The key drivers are market demand, perceived threats, and opportunities for growth and better performance in the target market.
References
Al Baik. (2020). Corporate: Putting MMMMMs and WOOOWs on our customers’ lips, every time, everywhere, the world over. Web.
This report presents a strategic analysis of Emirates Airline, a Dubai-based national carrier with operations in three segments: “airline, in-flight, and all other” (MarketLine 2014, para. 5). The aim is to identify the strategic choices of the firm that could improve its competitiveness in the industry. Emirates’ current strategies include improving in-flight services for travelers and lowering its operational costs to enhance efficiency. On the other hand, one potential strategy is expanding its network to overseas markets. The analysis will cover the suitability, acceptability, and feasibility (SAF) of these strategies. Based on the findings, the report will identify and recommend one strategy for implementation by the Emirates.
The SAF model applied to Emirates indicates that each of the three strategic options is essential in the airline’s growth. Based on this framework, the three strategies are good choices for the firm. However, skill development and proper financial development are required to support implementation. In terms of acceptability, the three strategic choices can be considered appropriate for the firm, but their utilization would require sound stakeholder management to reduce political risks.
Feasibility evaluation reveals that the strategies are executable because of the firm’s large capital base and internal resources. However, external constraints, such as industry rivalry and fuel prices, may affect the adoption of the first strategic option. Although each of the three strategic alternatives represents a viable option for Emirates, cost, financial risk, and customer service considerations make the second strategy the best choice for implementation.
Identification and Review of the Strategies
SWOT Analysis
A SWOT matrix (Appendix 1) was applied to Emirates to reveal its internal strengths and weaknesses as well as potential market opportunities and threats in commercial aviation. SWOT analysis is a strategic tool for the evaluation of a firm’s internal and external environments to determine its strategic position in the industry (Kotler & Keller 2011). Based on the evaluation, the following three strategic choices were identified:
To lower the operational costs through a lean workforce and maintaining low overhead costs.
To enhance luxury travel through integrated passenger lounge and in-flight services.
To expand its network into emerging markets or international destinations in Asia and the Americas.
Porter’s Five Forces Analysis
Porter’s five forces provide a useful framework for analyzing industry structure and processes to identify the “sources of competitive advantages” for a firm (Porter 2008, p. 67). Applying this model to Emirates indicates that the forces could have a significant effect on the airline’s competitiveness. The threat of new substitutes, supplier power, buyer/customer power, and industry rivalry is high. However, the threat of new entry is low because of the high capital/resource requirements and brand equity enjoyed by established carriers (Sheffi 2006). In particular, the rise in the competitive rivalry in the low-cost segment, rising fuel costs, and expansion into the Asian market present a threat to the Emirates’ competitive position. A detailed Porter’s five forces analysis is included in Appendix 2.
The Strategic Drift Model
A strategic drift arises when a firm’s strategies are shaped gradually by its history or organizational culture that is not in consonance with industry trends (Grant 2002). It encompasses three phases, namely, incremental change, strategic drift, a period of flux, and transformational change. The risk of strategic drift for the Emirates is low because of the firm’s IT solutions segment. In addition, Emirates has installed the latest in-flight technology, including TVs, audio/video systems, and on-board communication devices that enhance the travel experience (Emirates 2012). It also offers a range of in-flight amenities, including hotel services, and lounge services to corporate clients and tourists (strategic option 2).
The Existing Strategies
Cost-reduction Strategy
Emirates utilizes this strategy to reduce costs to enhance its competitiveness. Its key elements include product differentiation to compete in the low-cost segment (Graham et al. 2009). It employs a hybrid pricing strategy for its ticket prices for the economy and business classes. The airline has a cost reduction model that entails a “lean workforce and young fleet” compared to other players gives it a strong competitive profile (Jammoul 2014, p. 7).
The firm’s other cost-efficient operations include
raising its passenger capacity through short- and long-hauls to several in-demand destinations
utilization of large carriers, such as Airbus A340, with a considerable carrying capacity (Lohman et al. 2011).
The firm’s A380 fleet is the largest in the industry globally (Lohman et al. 2011). Emirates airline also uses fuel-efficient technologies in its fleet to cut down operational costs.
Enhancing Passenger Lounge and In-flight Services: Recommended Strategy
Emirates has full-service lounges at its primary airport in Dubai to cater for arrivals and departures. The aim is to offer customers an efficient and enjoyable traveling experience. The airline has adopted the IATA-recommended guideline dubbed ‘Simplifying the Business’ or StB to further improve the efficiency of its pre-flight lounge services. The StB entails five features that automate the entire traveling process, namely, “e-ticketing, eCheck-In, eBoarding pass, eBaggage Management, and eFreight” (International Air Transport Association [IATA] 2008). In addition, it offers integrated in-flight catering and accommodation for travelers. The airliner invested in 37 lounges in different destinations globally to provide dining services to passengers (Jammoul 2014).
Emirates Airline is renowned for its superior in-flight services globally. The firm has won several accolades for its quality in-flight products, including the Airline Passenger Experience Award and the British Travel Award, among others (Lohman et al. 2011). The awards help reinforce the firm’s brand image globally. Emirates should continue improving its on-board facilities, e.g., entertainment and communication (Wi-Fi), and catering services to maintain its strong competitive position. Its product development efforts should focus on installing technologies that enhance passenger comfort and communication while on-board.
Potential Future Strategy
International Expansion Strategy
The airline is considering a geographical diversification strategy to spread its operational risks. The top destinations for expansion include locations in South Asia through code-share agreements with other carriers such as Malaysia Airlines (Lovestock, Wirz & Keh 2002). In recent years, the airline has attracted traffic from the S. Asian market to N. America, enabling travelers to avoid passing through EU airports such as Heathrow and Frankfurt (Lohman et al. 2011). Thus, the LCC-dominated markets in Asia, including China, India, Malaysia, and the Philippines, are potential destinations for Emirates (Damuri & Anas 2008). Passengers from these countries can stopover at Dubai International Airport en route to North America or Australia and New Zealand (Auckland destination).
Evaluation of the Strategies using the SAF Model
The three strategies will be analyzed to determine their suitability, acceptability, and feasibility in the commercial aviation context.
Suitability
The appropriateness of the strategic options for Emirates will depend on their relevance to the firm’s internal capabilities and strategic vision as well as to the macro-environment forces/trends in the industry (Dess, Lumplin & Eisner 2007). The key trends identified in the commercial aviation industry include global/regional economic slowdowns, environmental concerns (emissions), rising fuel prices, and competition from low-cost carriers (McGee, Thomas & Wilson 2005).
The three strategies can help Emirates reduce costs (strategy 3), increase its revenue through diversification (strategy 1), and improve the quality of customer service (strategy 2) in line with macro-environment trends. In addition, Emirates Airline has a large fleet size (217 large carriers), integrated services, and brand equity (intangible resource) to support its growth. However, the successful implementation of these strategies will require staff training and development.
Acceptability
The acceptability of a strategic choice evaluates stakeholder expectations to determine their reactions and anticipated returns or risks (Slack, Chambers & Johnston 2004). The ‘acceptability criteria’ applied to Emirates can indicate the stakeholders’ expectations, expected returns/profits, and inherent risks. The main stakeholders include the Dubai government, company management, passengers, travel agents, aircraft providers, and staff. There is a good chance the Dubai government will accept the strategies that enhance the government-owned carrier. Emirates’ management, which features experienced practitioners, is likely to accept measures that strengthen the airline’s competitive position (Emirates Group 2015).
However, the staff is likely to oppose the cost-cutting measures (lean workforce) contained in the strategic action 1. Passengers will readily accept cheaper, but quality schemes that include improved in-flight/lounge services. On the other hand, the aircraft suppliers and travel agents may not be affected by the airline’s cost-reduction measures because they depend on many clients.
Emirates airline reported a 34% growth in revenue in 2015 ($1.5bn) (Research and Markets 2013). Its healthy financial position means that the firm has sufficient cash flow for investing in in-flight amenities and fund overseas expansion. Therefore, the strategic options will not reduce the financial returns/profits of the airline.
Feasibility
The feasibility of the strategies based on its resources and constraints. The requirements for the implementation of the strategies include financial systems, passenger management systems, and HR systems. The firm already has technology (Emirates IT) to support these systems. The constraints may include fluctuations in fuel prices, the growth of the LCC sector, and political risks (government control). Overall, the three strategies can be implemented without incurring extra costs.
The Implementation of the Recommended Strategic Option
The involvement of executive management is needed to streamline internal processes and remove administrative barriers.
The financial investment to purchase and install or upgrade systems that improve the in-flight experience.
Customer training on the use of the new systems is required. Interactive feedback can help tailor in-flight services to customer needs.
Staff training may be necessary for front-line employees.
Conclusion
The SWOT, five forces, and strategic drift analysis revealed three strategies that Emirates could utilize to strengthen its competitive position. An evaluation of the strategies using the SAF model showed that the three options could contribute to the airline’s growth. However, internal resources (finance and costs) and external constraints make the improvement of in-flight services the best strategy for Emirates for now.
References
Damuri, Y & Anas, T 2008, The Emergence of Low Cost Carriers in South East Asia. Web.
Dess, M, Lumplin, C & Eisner, F 2007, Strategic Management: Creating Competitive Advantages, McGraw-Hill, New York.
Emirates 2012, Airlines and Subsidy: Our Position. Web.
Emirates Group 2015, Leadership: The Senior Management Team. Web.
Graham, F, Nigel, D, Ison, S & Humphreys, I 2009, ‘The Transferability of the Low-Cost Model to Long-Haul Airline Operations’, Tourism Management, vol. 28, no. 2, pp. 391-398.
International Air Transport Association [IATA] 2008, Fact & Figure Environment. Web.
Jammoul, A 2014, The Strategic Diagnosis: Emirates Airlines, Sophia University Presss, Nice, France.
Lohman, G, Albers, S, Koch, B & Pavlovich, K 2011, ‘From Hub to Tourist Destination–An Explorative Study of Singapore and Dubai’s Aviation-Based Transformation’, Journal of Air Transport Management, vol. 15, no. 5, pp. 205-211.
Lovestock, H, Wirz, L & Keh, P 2002, Service Marketing in Asia: Managing People, Technology & Strategy, Prentice Hall, New York.
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McGee, J, Thomas, H & Wilson, D 2005, Strategy Analysis and Practice, McGraw Hill, New York.
Porter, M 2008, ‘The Five Competitive Forces That Shape Strategy’, Harvard Business Review, vol. 23, no.1, pp. 1-9.
Research and Markets, 2013, Emirates Airline – Strategic SWOT Analysis Review. Web.
Sheffi, Y 2006, The Resilient Enterprise: Overcoming vulnerability for competitive advantage, Pearson Education, New Jersey.
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Appendix 1: SWOT Analysis
Strengths
Government support which gives it a competitive advantage in the GCC markets
Global presence (>150 destination), which helps spread external risks
Wide portfolio – activity in hotel services, cargo, etc.
Strong supply chain partnerships, e.g., with aircraft manufacturers, like Boeing
Integrated hotel & tourism services (5-star hotels)
Primary user of the Dubai international airport – an important stopover for travellers
Weaknesses
High debt burden (up to 42.4bn Dirham in FY2014) that affects its expansion efforts
Risky acquisitions and diversification actions
Weak HR processes – relies on low-wage labour for baggage handling
Declining liquidity level – current ratio dropped by 21.8% to 0.8 in 2014
Opportunities
Huge market in China – a fast-growing economy with tourist destinations
Market opportunities in the Travel & Tourism sector – Dubai visitors
Partnerships (horizontal integration) with airlines like Jet Blue to minimize operational costs (strategic option 1)
Threats
Rivalry from established national (Etihad), regional, and international carriers
Global recession trends in China and the EU
Fluctuation in fuel prices
Epidemics such as bird flu
Appendix 2: Porter’s Five Forces Analysis: Emirates
Threat of New Entry
In the UAE, national regulations and industry requirements act as barriers to new entry. Emirates Airline is a national carrier; therefore, it enjoys the government support (monarchy). Another entry barrier is brand equity, whereby established carriers boast of a strong presence and brand value. The huge capital investments constitute another barrier to new entry. Emirates is an established brand of the Emirates group. Therefore, capital is not a problem. Therefore, the threat of new entry is low.
Competitive Rivalry
The number domestic, regional, international carriers keep on increasing. Over 37 airlines serve Dubai. Emirates’ local competitors include RAK Airways and Etihad Airways. Competition from low-cost carriers (LCC) like Jazeera Airways and Air Arabia reduces the profits of carriers that offer long-haul services, such as Emirates. Therefore, competitive rivalry in the UAE commercial airline industry is high.
Buyer Power
Customers have a high bargaining power because ticket costs vary depending on the travel option (budget or luxury option). In addition, the switching costs between airlines are low. Thus, carriers compete by providing schemes that include cheap tickets with quality services. However, Emirates can integrate backwards with its in-flight amenities (strategic option 2) to compete. It also has a differential advantage due to its broad portfolio. Overall, buyer power is significant in this industry.
Supplier Power
The aviation industry has only two aircraft manufacturers, Boeing and Airbus. Therefore, switching costs for carriers are very high. In addition, many airlines depend on two suppliers for maintenance parts and services. Thus, supplier power is significant.
Threat of Substitutes
Travellers have many airlines to choose from, hence, the threat of substitutes is very high. Passengers often consider ticket prices and in-flight and lounge services when selecting a flight. The price difference between substitutes (LCC) and Emirates services is large. However, airline is a leader in the luxury segment. In addition, it uses product differentiation and geographical diversification (strategic option 3) to compete. Overall, the threat of substitutes is high in this industry.
Appendix 3: Strategic Drift
Phase 1: incremental change
Emirates adopted a growth strategy based on operational efficiency and cost reduction.
Current strategies are built around the firm’s capabilities, such as resources and technological expertise.
Phase 2: Strategic Drift
Emirates has been on the forefront in developing innovations that improve customer experience through its IT section.
It has backward integration with suppliers to develop custom-made in-flight amenities for its fleet.
Phase 3: A Period of Flux
The airline has managed to maintain a good organisational fit free of conflict.
Skilled and committed management coupled with government support has contributed to improved performance.
Phase 4: Transformational Change or Death
Emirates has reported a revenue growth since its establishment. It has never gone into receivership or merged with other airliners.
Service workforces are the main contributors to efficient and quality services. Both of these are considered essential resource for competitive market advantage. Therefore, amongst the most tricky and demanding jobs in any service organization including the Emirate Airline is the frontline occupation. In this type of occupation, the workforces are anticipated to be resourceful and swift in accomplishing their set of responsibilities. They have to be supportive and approachable when managing their clients (Schuler, Jackson & Luo, 2004). Thus, it is hard for service corporations to have nearly all of their manmade capitals and reserve organization strategies correct.
A majority of the flourishing service tendering corporations such as Emirates Airline have obligations to offer valuable human capital administration strategies namely retaining, training, motivating, recruiting, and selecting its staff members. It is perhaps tricky for marketplace rivals to have a replica of Emirates Airline high performance human capitals (Bamber, Gittell & Kochan, 2009). This paper highlights the process of employees’ recruitment and selection at Emirates Airlines.
Background
Based in one of the greatest cities found in the United Arab Emirates, Emirates Airline offers air-travelling services to and from North America, Europe, Africa, Asia, and Middle East. That is, its main activity is to provide commercial air transportation services. The company also provides external services such as cargo, in-flight catering, engineering, and training, not to mention its involvement in hotel and resort development. The company is headquartered in Dubai that is a well-known hub for the provision of flight services. Emirates Airline has rapidly grown since its inauguration and presently employs over forty thousand staffs in its global operations.
Emirates Airline was originally opened in the financial year 1985 and from that time the corporation has received the general merit and consumer services prizes. This is part of its vision and mission though it is not fully realized. As its mission, Emirates Airline aspires to be the best and dominant airline corporation globally. The corporation is fully owned by the government of Dubai. The Dubai administration in part funds service provisions tendered by Emirates-Airline while the other part is financed by private business entities. To go global and setup its business dealings to other foreign states, Emirates Airline was forced to seek business affiliations with universal airlines like Continental-Airways, Japan-Airlines, Jet-Airways, Virgin-Blue, and United-Airways.
Human Resources at Emirates Airlines
Service intensities and the manner through which products are tendered at Emirates Airways serve as the central basis for competitive market dominance and commodities segregation. The emanating strengths of clients-frontline workforce relationships are always considered as essential drivers of clients’ loyalty as seen in Emirates Airline case (Bamber, Gittell & Kochan, 2009). Emirates Airways has attained prolonged market dominance merit shown through its calculated sensation.
Although the airline industry is awfully challenging given its devastating business cycle, differentiation difficulty, overcapacity, structural unattractiveness, and high-risk profile, Emirates Airline has been consistently outperforming its market rivals since its institution (Denisi and Griffin 477). Its organizational competencies that offer support for the delivery of cost effective service excellence were achieved via Emirates Airline supporting capabilities and generic strategy.
To achieve its long-term strategic objectives and goals, Emirates Airline human resource especially the frontline staffs are dedicated to play the core role in offering the most visible service elements from customers’ viewpoint. To achieve its strategic goals, the human resource management at Emirates Airline has reinforced five distinct elements that form the cornerstone for its service delivery excellence (Schuler, Jackson & Luo, 2004). These fundamentals consist of rigorous staffing and selecting procedures, structuring of different flourishing service tendering groups, far-reaching workforce guidance and re-training, workforce empowering as well as recruits stimulus. In most cases, the services being offered are merely outlined. Most airlines hardly deliver the promised services to their clients.
The implementation of these staffing elements by Emirates Airline human resource management makes it difficult for market competitors to imitate their sophisticated global operations. To deliver sustained service excellence and effectively manage its staffs, Emirates Airline recognizes human assets as the most crucial and important facets in any service industry.
This helps the Emirates Airline Corporation to avoid quality service imitations by market competitors (Rogers, 2006). Further, from clients’ experiences, it is evident that regulars often see the frontline staffs as the Emirates Airline Corporation itself. Thus, the Emirates Airline staffs are empowered to continually make appropriate resolutions on clients’ service deliveries and take relevant corrective actions for service recovery (Rogers, 2006). Moreover, the frontline service and general staffs are regarded as the core part of Emirates Airline brand. The way customers are being serviced indicates the deliverance of the corporate brand.
Strategic Staff Recruitment and Selection
To achieve its staffing plan in order to meet its strategic objectives, Emirates Airline puts more emphasis on aspects that relate to staff selection and recruitment (Denisi & Griffin, 2005). For instance, the Emirates Airline human resource management believes that the right people are the most important assets and when any company employs wrong people, they normally become liabilities. In Emirates Airline staffing plan, the human resource strategies begin with a stringent recruitment process as discussed below.
Jobs Normally Available at Emirates
The airline operations and management are determined by Emirates Group. Emirates Group comprises of individuals and businesses that have shares in the airline. The Group determines all operative segments including ground service division, the flights, human resources, the hospitality division and other satellite areas such as maintenance, IT, communications and public relations.
Job Application and Recruitment Process
At Emirates Airline, each job applicant must get through a recruitment and selection process that has four steps in order to join its dedicated workforce. First, all job applicants must submit their applications online. Whichever employment position available in the airline requires minimum academic qualifications that must be verified through production of genuine certificates. After making the online application, the applicant will have to wait for any information from the Emirates Airline human resource recruitment office. Failure to get any response to your application would definitely imply that it had been rejected. If it is accepted, the applicant will be called and interviewed by the recruitment office through telephone. The applicant must pass the Emirates Airline telephone interviews before proceeding to other selection and recruitment stages.
The Emirates Airline Selection Procedure
Like in any other company, the job selection and recruitment process follow a strict laid down procedures. Any person willing to work with the airline must meet not only the minimum required academic qualifications and skills, but also a range of physical necessities. After accomplishing these baseline conditions and passing the telephone interview, the applicants undergo another three round interview namely water test self-confidence, uniform test out, a psychometric assessment and a festivity test (Denisi & Griffin, 2005).
This process eliminates the unfit for job applicants and leaves only qualified applicants for admission. Six months probation period are allowed for the new recruits after the preliminary training. During this probation period, the in-flight or operations supervisors submit monthly reports. Usually about 20% have their probation period extended, 75% getting confirmed for contractual jobs while the rest deemed to leave Emirates Airline.
Senior managers lay much emphasis on the fact that Emirates Airline only looks for employees who can empathize with their customers and who are friendly, cheerful, and equally humble (Rogers, 2006). Thus, the short listed applicants attend in-depth group interviews and language competence to gauge whether they possess the competencies and core values that Emirates Airline requires. This meticulous selection and recruitment processes ensure that with reasonable certainty, Emirates Airline only hires applicants possessing a selection rate of 3 to 4% of its applicant pool and that the staffs have the desired attributes (Denisi & Griffin, 2005).
Final Steps in the Selection Process
The selection processes for the qualified employees follow the interview. Those found qualified will automatically be absorbed into the airline mainstream employees. Before being permanently employed for a position, the applicants must pass additional requirements and application tests during probation. Finally, the employees’ services human resource department will have to contact its new employees in case it offers a permanent position and organize for their movements to any work destination. Relevant work details will be offered to the new employees of Emirates Airline and they will have to sign the essential documents like the official contract form for employment.
Benefits Offered to Emirates Airline Employees
Complete salary package and other employment benefits are also available for new recruits in the emirates airline. Most of the airline employees do not have residence in Dubai. Majorities are foreigners and requires daily flights back to their home countries. The airline has the obligation to cater for their travel and accommodation expenses. Furthermore, all employees receive bonus payment for end of service and thirty days scheduled holiday. Highly leveled workers are befitted with a range of extra employment benefits including pension and retirement funds besides other insurance benefits and travel compensation.
Problems in the Recruitment and Selection Process of Emirates
More often than not, companies like Emirates Airline encounter different problems in their staffs recruitment and selection processes. As per this case study, problems that are usually encountered include discrimination such as in gender, age, and race alongside recruitment and selection irregularities. These normally occur when the human resource managers fail to adhere to the fair and consistent staffs’ recruitment and selection processes. These could amount to wasting a large amount of resources and time as well as recruiting unqualified and wrong staffs to occupy the vacant posts.
Conclusion
For Emirates Airline to achieve its human resource staffing plan over the next years, its HR practices must revolve around stringent recruitment and selection processes. From the case study, it is true that the HR extensively recruits and selects as well as train and retrains its service delivery team. An applicant must pass through various stages before getting employment at Emirates Airline. However, the process of recruiting and selecting staffs is not free from discrimination and irregularities problems. To overcome these, the Emirates Airline recruiting officers must ensure that all vacant posts are publicly advertised and each of the recruitment and selection processes is followed without fear or favor. All the applicants must be subjected the stipulated employment tests. Only job applicants who have suitable specifications that suit the job descriptions should be employed.
References
Bamber, G., Gittell, J., & Kochan, T. (2009). Up in the air: How airlines can improve performance by engaging their employees. New York, NY: Cornell University Press.
Denisi, A., & Griffin, R. (2005). Human resource management. New Delhi, India: Dream tech Press.
Rogers, C. (2006). The cabin crew interview made easy: everything you need to know about being successful at a flight attendant interview. London, United Kingdom: CE Publishing UK.
Schuler, R., Jackson, S., & Luo, Y. (2004). Managing human resources in cross-border alliances. New York, NY: Routledge.
