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Running head: EMIRATES AIRLINES 1

Emirates Airlines
(Operational services)
name

Institution

Date
EMIRATES AIRLINES 2

Table of Contents
1.0 Introduction ................................................................................................................................. 3

2.0 Productivity ................................................................................................................................. 4

3.0 Forecasting................................................................................................................................... 5

4.0 Product and service design ......................................................................................................... 5

References ........................................................................................................................................... 6
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Emirates Airlines

1.0 Introduction
Emirates Airline is a subsidiary of the Emirates Group based in Dubai, United Arab
Emirates. The company is owned by the government of Dubai investment Corporation. The
airline flies approximately 161 destinations globally making it one of the best airlines in the
world. According to Cook & Billig (2017), the company is the fourth-largest airline in terms
of income generation, the number of passengers and the distance flown. Emirates Airlines has
grown from modest beginnings to emerge multinational aviation known for its foremost
products and services. Emirates started its modest growth in 1984 when the Minister of
Defense, Sheik Mohammed bin Rashid al Maktoum, and Sir Maurice Flanagan, a member of
the royal family in Dubai prepared a business plan concerning the introduction of an airline.
In March the following year, Sir Maurice Flanagan planned to launch an airline with $10
million as capital fee and to be launched in 5 months.

Being under the travelling industry, the company is embodied to provide its clients with
the best in-flight experience through their proficient cabin crew. This implies that the
company is more focused on providing travel services to consumers. One of the factors that
sustain Emirates’ performance in the global market involves its organizational strategy.
Emirates Airlines incorporates the three most important organization strategies:
differentiation strategy, low-cost and risk response strategy. In most scenarios, Emirates has
been on the forefront in the execution of the three strategies to balance between income
generation and customer demand.

According to the differentiation strategy, the firm creates unique products and services
that will attract more consumers since unique products are often better than normal products.
Emirates Airlines also executes a low-cost strategy when the firm wants to gain market share
and stimulate demand, especially in new markets. Thus, the low-cost strategy is pricing
model that most company offers for the purposing of expanding their markets. Alternatively,
the response strategy is mainly applied when developing strategic options and making a
decision that would improve opportunities and minimize threats such as risks.

Contemporary, Emirates Airlines follows Mckinsey strategy since the company is


committed with the diversity of its clients, shareholders and cabin crew. The company
embraces diversity in management which enables the company to ensure their clients receive
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unique services that are driven by passion. And so, the airline has flights that fly in various
cities globally. Furthermore, Emirates flying services are categorized into various products
such as flight classes (first class, business class and economic class), airport services,
emirates holiday and sky cargo. These products and services are meant to a wider group of
customers since consumer have a choice of selecting their service want to base on their
capability. The company is highly competitive both internally and externally because of the
wide range of services helps in creating uniqueness and outshining its competitors. A
competitive environment demands an entity that is versatile and flexible to innovation in
service delivery.

2.0 Productivity
Gul et al (2015) defines productivity as the measure of the efficiency of an entity such
as an industry. It is recommended that productivity should be measured in terms of dividing
the average output per production period by the total cost of production incurred. Productivity
is a simple mathematical concept that generally balances between output and input to create a
difference that can be termed as either profit gain or loss. For example, if Emirates generates
an output of US$ 200 million with an input of 1000 employees’ productivity is calculated as
follows:

𝑇𝑜𝑡𝑎𝑙 𝑜𝑢𝑡𝑝𝑢𝑡
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 =
𝑇𝑜𝑡𝑎𝑙 𝑖𝑛𝑝𝑢𝑡

200
Therefore; 𝑃 = 1000

= US $0.2 per employee

Emirates Airline can increase productivity through the following ways:

 Increasing service production,


 Widening the market industry,
 Minimizing the production cost, and
 Outsourcing various minor services

Relatively, the following factors affect the rate of productivity in Emirates Airlines

 Production factors,
 Financial standings,
 Management factors,
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 Organizational factor,
 Technical factors, and
 Government factors

3.0 Forecasting
Forecasting a decision-making technique that helps a company to estimate or predict a
future trend. Forecasting is essential in planning, budgeting, estimating and future
performance and growth (Hyndman & Athanasopoulos, 2018). Henceforth, forecasting is a
powerful tool that should be considered sensitive because poor forecasting can result in a
company’s downfall or future struggles. Forecasting techniques include time series analysis,
qualitative and projection model. To improve forecasting, a corporate firm needs to focus on
the exceptions, create a flexible process, apply a consistent model and avoid complications.

4.0 Product and service design


Companies like Emirates are engaged in product and service design since an effective
design process enables the company to attain a competitive advantage. For instance,
packaging products, implementing new techniques customer satisfaction and profit
maximization and using various platforms to brand the company’s image contribute to
gaining competitive advantage. In-depth the company can gain competitive advantage
through increasing sales, gaining more customers and getting a positive review of the
company’s services. One of the major improvements that Emirates Airline should consider is
to consistently expand their destinations while the firm maintains high service standards.
Moreover, Emirates Airline should consider ethical, legal and sustainability issues because
the issues create reputation and brand value of a company. As a result, the principles of
corporate social responsibility would enhance efficiency and strengthen shareholders and
investors relations.
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References
Burghouwt, G. (2016). Airline network development in Europe and its implications for
airport planning. Routledge.

Cook, G. N., & Billig, B. (2017). Airline operations and management: a management
textbook. Routledge.

Gul, S., Nisa, N. T., Shah, T. A., Gupta, S., Jan, A., & Ahmad, S. (2015). Middle East:
research productivity and performance across nations. Scientometrics, 105(2), 1157-
1166.

Hyndman, R. J., & Athanasopoulos, G. (2018). Forecasting: principles and practice. OTexts.

Iordanova, D. (2018). Global film at global airlines: a “territory” in the air. Alphaville:
Journal of Film and Screen Media.

Katsioloudes, M., & Abouhanian, A. K. (2016). The Strategic Planning Process:


Understanding Strategy in Global Markets. Routledge.

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