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Emirates case study.

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bSWOT AnalysisStrengthsCASE STUDY: THE EMIRATES GROUP, 2014NAMEMATRIC NUMBERMd. Hafizur RahmanCEB100705Azrul Bin AzmiCEA120010Mohamad Faiz Fahmi Bin Che HamzahCEA120046Woo Hwei YeeCEB120065Yap Woon YeeCEB120073Group Members: -Group 2Lecturer:Dr. Tey Lian SengTutorial: Wednesday 8.00 am 9.00 amContentAIntroductionBStrengths, Weaknesses, Opportunities And Threats (SWOT) AnalysisCPorters Five-Forces ModelEStrategies and ObjectivesFCompetitors and Theirs StrategiesDFinancial PerformanceGRecommendationsHConclusionFCompetitors and Theirs StrategiesSingapore Airlines GroupDifferentiationDFinancial PerformanceFinancial PerformanceLiquidity AnalysisActivity AnalysisDebt AnalysisProfitability AnalysisMarket Value AnalysisBETWEEN YEARSAMONG COMPETITORSAINTRODUCTIONSheikh Ahmed bin Saeed Al MaktoumChairman and CEOAli Mubarak Al Soori

Executive Vice-president Facilities and Project ManagementThierry Antinori

Executive Vice-president Passenger Sales WorldwideAdel Ahmad Al redha

Executive Vice-president Engineering and OperationsSir Maurice Flanagan

Executive Vice Chairman

Abdulaziz Al Ali

Executive Vice-president Human Resources

Nigel Hopkins

Executive Vice-president Services Department

Ismail Ali Albanna

Executive Vice-presidentDnata

Tim Clark

President Emirates AirlinesGary Chapman

President Group Services and DnataEmirates is known around the globe as a world-class airline with world-class products and services. The airline ranks among the top ten carriers worldwide in terms of passenger kilometers, and has become the largest airline in the Middle East in terms of revenue, fleet size, and passengers carried as of 2014, the airline is the fourth-largest airline in the world in terms of international passengers carried and third largest in terms of scheduled passenger kilometers flown. The airline is also the third-largest in terms of scheduled freight tone- kilometers flown.

Emirates has built up a strong brand name as a leader in the aviation industry, particularly in terms of service excellence, and its very rapid growth, coupled with consistent profitability. Emirates has won numerous awards too.

It is such a airline which everyone's dream to fly with.So keep flying with Emirates.

HConclusion

CONCLUSIONWeaknessesbSWOT AnalysisInternal Factor Evaluation(IFE) Matrix Key Internal Factors WeightRating Weighted scoreStrengths1The largest airline in Middle East0.0940.362Worlds largest operator of both the Airbus 380 and Boeing 7770.0640.243Include Dnata company that specialize in aviation ground-handling services0.0530.154Well known for providing excellent service for high-end passengers in first class0.0630.185Well-diversified company with respect to regions served0.0840.326Fully support by Dubai government0.1040.47Has a strong workforce of over 67,000 employees0.0630.188Fly more than 130 destinations covering 70 countries in 6 continents0.0530.15bSWOT AnalysisStrong Internal PositionbSWOT AnalysisWeightRatingWeighted ScoreWeaknesses9Relying heavily on International Moving Traffic0.0710.0710High competition because limited market share growth 0.0910.0911Does not cater to middle class and budget travellers0.0620.1212Difficulties of keeping up with innovation 0.0520.113Difficult to differentiate from close competitor0.0810.0814Problems with cost effectiveness0.0520.115Employee dissatisfaction0.0520.1TOTAL12.64OpportunitiesbSWOT AnalysisbSWOT AnalysisExternal Factor Evaluation (EFE) MatrixKey External FactorsWeight RatingWeighted scoreOpportunites 1Dubai is one of the fastest-growing countries0.0930.272The Americas market grew at the highest rate 0.0640.243East Asia and Australasia regions had the largest overall AED growth0.0640.244Entered into a partnership0.0730.215Acquiring new destinations0.0520.16Emerging of UAE as a key flight interchange hub 0.0820.167Acquisition of weak performance or small airlines companies0.0610.068Service advancement 0.0830.24bSWOT AnalysisWeight Rating Weighted ScoreThreats 9Demand for low price flights growing rapidly0.0910.0910Increasing fuel price0.1020.211The legal and political environment0.0520.112Global recession and economic crisis0.0520.113Competitors aggressive strategies0.0630.1814Limited access to China destinations0.0420.0815New partnership of Qatar airways with Oneworld0.0620.12TOTAL12.39Existing strategies does not respond wellbSWOT AnalysisDFinancial PerformanceRatio201120122013Remark1Liquidity AnalysisCurrent Ratio1.0270.9781.100mediumQuick Ratio0.9670.9201.050Good2Activity AnalysisFixed Assets Turnover1.2251.1851.189mediumTotal Assets Turnover0.8130.7980.751bad3Debt AnalysisDebt to Assets0.6800.7220.757badDebt to Equity2.1272.5913.116bad4Profitability AnalysisReturn on Equity0.2630.0750.105mediumReturn on Sales0.1030.0260.034medium5Market Value AnalysisEarning Per Share0.7760.8970.930goodFinancial Performance Between YearsDFinancial PerformanceRatioEmiratesSingapore AirlinesBritish AirwaysDeltafly DubaiMiddle east airlinesRemark1Liquidity AnalysisCurrent Ratio1.1001.3520.6300.682n/an/amediumQuick Ratio1.0501.3020.6060.632n/an/amedium2Activity AnalysisFixed Assets Turnover1.1891.1341.2700.887n/an/amediumTotal Assets Turnover0.7510.6730.9580.723n/an/amedium3Debt AnalysisDebt to Assets0.7570.0450.7940.777n/an/amediumDebt to Equity3.1160.0754.1983.488n/an/amedium4Profitability AnalysisReturn on Equity0.1050.0331.0680.207n/an/amediumReturn on Sales0.0340.0290.0250.279n/an/amedium5Market Value AnalysisEarning Per Share0.9300.3670.13112.41n/an/amedium

VIDEO PROMO EStrategies and ObjectivesEStrategies and ObjectivesObjectivesFlydubaiLow-cost strategyflydubai is a discount airline provider.flydubai was recognised as being the worlds most innovative and influential low cost carrier by aviation analysts Centre for Asia Pacific Aviation (CAPA).

MergerIn 1963, MEA merged with Air Liban . After merger with Air Liban, MEA added new European, Middle Eastern and West African destinations to its worldwide network.In 2012, MEA joined Skyteam to expand global reach and offer more destinations.

Middle East Airlines

FCompetitors and Theirs StrategiesBritish AirwaysStrategic AllianceAn arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project.Alliances with several airlines such as Comair of South Africa and Sun Air of Scandinavia.

DiversificationBritish Airways offers different classes of seats. It include economy class, premium-economy class, business class and first class.

FCompetitors and Theirs StrategiesDeltaDiversificationOffers different classes of seats: business elite, first class, economy comfort, and economy class.

Market developmentThe airlines diversified network coverage with hubs located in major airports of Amsterdam, Atlanta, Cincinnati, Detroit, Minneapolis, New York, LaGuardia, Paris, Salt Lake City, Seattle, and Tokyo.

Joint ventureIn 2011, Delta received approval from the U.S. Department of Transportation to establish a new joint venture with Virgin Australia.

FCompetitors and Theirs StrategiesMore alliance with other aviation companies How could the firm best implement what you recommend?Aggressive promotional activities Offer Membership cards Cooperation among competitors to make win situation Acquisition Cut excessive cost

GRecommendations28

GRecommendationsWhat implementation problems do you envision?More alliance or Cooperation among competitors may be under threat to reveal business secretes. Aggressive promotional activities depends on business financial conditions.Occupied companies are may not be successful. Need to cut excessive cost very carefully especially for, exclusive service providing companies.

GRecommendations30Increase of aviation security costs and insurance which increase the operational costs of airlines.New entrants and the raise of low cost airlines.The e-ticking system can be abuse by the hackers or it might be crashed by viruses, this will damage the company database and will cost a lot of money.

GRecommendations

Threat of a Substitute ProductsIn the Europe they are using trains to travel from country to another for example, its easy to travel by train from the UK to France by Eurostar train in just 1 hour 40 minutes (London to France)The airline industry might face losses of around $ 3 billion if the oil prices did not reduce. (IATA)

GRecommendationsHow could the firm avoid or solve those problems?Avoid risky routes and destinations By implementing Strong e-ticketing system and websitesMaintain the present service standard Should contract with few alliance by maintain highly business secreteIncrease inflight security service

GRecommendations33

Emirates, your ultimate flying partnerGRecommendations34ReferencesDavid, F.R. & David, F.R.(2015), Strategic Management Concepts and Cases, 15th Edition, New Jersey: Prentice-Hall International

Singapore Airlines Group. (2013). Annual Report and Account Year ended 31 December 2103. Retrieved from: http://www.singaporeair.com/pdf/Investor-Relations/Annual-Report/annualreport1213.pdf

British Airways. (2013). Annual Report and Account Year ended 31 December 2103. Retrieved from: file:///C:/Users/AZRUL%20AZMI/Downloads/BA%20Annual%20Report%202013%20(2).pdf

Delta Airlines. (2013). Annual Report and Account Year ended 31 December 2103. Retrieved from: http://ir.delta.com/files/doc_downloads/Annual%20mtg/DAL%2012.31.2013%2010K_v001_p656x9.pdf

Singaporeair.com,. (2015).Welcome to Singapore Airlines | Official Website. Retrieved from: http://www.singaporeair.com/SAA-flow.form

PJSC, E., Nelson, S., & Subramanian, S. (2015). EMIRATES:DFM Stock Quote - Emirates NBD PJSC. Bloomberg. Retrieved from: http://www.bloomberg.com/quote/EMIRATES:UH

Emirates Group. (2013). Annual Report and Account Year ended 31 December 2103. Retrieved from: http://www.theemiratesgroup.com/system/aspx/download.aspx?id=tcm:409-1206241

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