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Factors Affecting Airline Business in Australia

1949 words (8 pages) Essay in Management

08/02/20 Management Reference this

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Contents

Operational strategy in global context

Project managing implementation of a new operation

Demand and resources in the airline’s companies:

Location strategies

Quality management and process design:

Inventory management:

Job design:

Bibliography

Operation management

A business is affected by different factors. These factors range from political influence, legal dealings, customers outcomes, marketers, competition range stakeholder and environmental conditional. These factors affect the business in different ways. In the case of the airlines business in Australia, the most prominent ad influencing factor is the natural environmental conditions (Pont, 2016).

Operational strategy in global context

With the fluctuation in the environment, the process decision making of the company changes. With the change in the decision the relative strategy of the company also changes. In the Australian airline, the decision making and operational strategies are interlinked with each other. With the change in the environment, the strategies are changing to be competitive and to be within the global competition. In the context of the Australian airlines, the strategy is the term that is used to sow the goals and targets of the organization that a company wants to achieve. It also covers the steps determine to achieve those steps. On the other hand, the operational strategy is a term that is used for some specifics decisions and action that elaborate the importance of operation and their role in achieving the overall target of the organization (Aranda, 2015).

In the Australian airlines, the 5 components are very important for productivity. These components are flexibility, cost, dependability, speed, and innovation. It causes a reduction in the cost, increases in the efficiency, the satisfaction of customer and reduction in operation failure (Al-Hajj, 2018).

Project managing implementation of a new operation

According to the studies at the global level, it is concluded that about 50% of the management of the project cannot be completed within the given time framework and budget range. When any project is completed than it is not perfect and does not meet the requirements and expectations. In the case of the Australian airlines, the project management plays a very important role in the operation and their implementations (Arnold Bakker, 2010). The successful implementation of the operation within the airline company entirely depends upon the proper implementation and use of the project management. The operation that could not be implemented successfully within the company is also due to the lack management of project managers. The first mistake that is done is an underestimation of time required for the implementation of the operation within the company. Furthermore, not all the risk factors are considered before implementing all risk factor. In some cases, the depth of the risk factors is not considered as much as they should be (Schaufeli, 2017).

With the help of the successful implementation of the project management, the majority of problems, risk factors can be reduced and the communication with the stakeholders can be enhanced and ultimately results and productivity is increased.

To implement the new operations, the project managers coordinate and plan the implementation of operation with the marketers and stakeholders (Furman, 2003). They established the complete written plan for the project and operation to be implemented. Moreover, they also consider the dependencies, estimations, and timelines for the operations. In the Australian airline’s companies, the project management lays the pathways for the successful implementations of the operation, their maximum output, increased productivity and output (Pupavac, 2013).

Demand and resources in the airline’s companies:

In Australian airlines, the main focus is one transport and with the passage of the time, its demand is increasing. The facilities of the flight are very important t maintain the business and it is one of the biggest demands by the customers and users. in the forecast of the company, it is estimated that in the next two decades there will be more need of 41, 040 airplanes. This range for more than 3.7% in the forecast of the company. This increase causes the avenue of the $6.1trillion. With eth increase in the demand of the fly, the demand of the facilities and the comfort level while traveling increases. There are different resources that inevitable for the company. In the case of the Australian airlines, the airport dominance is more important than the route dominance. This can be analyzed by noting the 17 years of the prices at the airport levels in Australia. There is no doubt that level of concentration at airports is one of the strongest marketing sources but at the same time, the level of concentration on routes appear to be one of the biggest sources for predicting prices (Ahire, 2000).

Location strategies

One of the very important components for the airline business is the location and the strategies related to it. Location plays a vital role in the triumph of the airline business. The profit of business depends upon the location. The selection of the location is the important component of the corporate strategy. It is the responsibility of the project manager to locate and select the location of the project that is beneficial not only at the national level but also at the international level. While the selection of the location, the different component are needed to be kept in mind. These components are the costs of the labor, cost of transportation, expenses of the utility, economic strength and taxes of demography.

While determining the location strategy, different characteristics and features are kept in view and the strategies are made.

 The most important feature is the availability of facilities at the concerning location. For the airlines, those facilities are kept in mind that help in gaining the long term and the short term goals and target. The other characteristic that is considered is feasibility. Feasibility is considered in different aspects. It is actually the ease of customer for using the airlines. After that, the government regulation and environmental regulation are also considered before establishing trade for Airline Company (Bubshait, 1996).

Quality management and process design:

The goal of the company is to provide the quality products and services to the users and customers and to earn a mass profit. The designing and formation of the product are based on the feedback of the customers. In the process design, the product is dividing into the different parts that help in the actual formation process. In the Australian airlines, the services are made or amended according to the customer’s feedback under the process design. In the quality management, such a management panel is set that maintain the level of quality being demanded in the business. It is also called the total quality management that included the policy of airlines quality, assurance quality and improvement of quality (Samanta, 2015).

Inventory management:

One of the very important of the supply chain is the inventory management that allows the flow of the services from the company to the buyers and customers. With the passage of the single day, the use of inventory management is increasing. With the help of inventory management, high sales and high productivity can be obtained. It helped the company in different ways. With the help of inventory management, the customer can easily access real-time data. Not only this is the high optimization obtained that directly influence the investment. After applying the inventory management the risk associated with outages and overstock can be reduced. If the Australian company is aimed to achieve positive externalities, it is important to follow the path of inventory management. With the help of inventory management, the company can approach the level of demand. The inventory management acts as a shield to absorb all variability of demand by customers.

Job design:

One of the most important components of HRM is the job design. The proper functioning of job design in Australian airlines companies is very important. With the help of the job design, the particularities of the content, process, connection and target of the company are satisfied with the technological and organizational platforms. Not only this personal and the social needs and requirements of employees are also fulfilled. There are different benefits of job design that are as follow:

Employee input: If a job is designed well then there are more chances of good feedback from that job. The workers and employers can change the task according to their needs, requirements, and circumstances. One of the core components of job design is employee training. In job design, the main focus is on the good training of the workers and it negates the theory of “leave them alone”. In the job design, the personal life of the employees is also kept in mind. The working hours and the rest hours are designed accordingly in job design (Campion, 2007). With this, the participation of the employees within their work field can be increased that eventually increases the profit and output of the company.

It is one of the ever-evolving processes that help the employees of the airlines to work according to the needs and requirements of the workplace. The main aim of the good job design in Airlines Company is to reduce the level of dissatisfaction of employees and to increase the motivation of employees at the workplace.

Bibliography

  • Ahire, S. L. (2000). The impact of design management and process management on quality. Retrieved from https://pdfs.semanticscholar.org/38d3/4b02820020aac7f060e84bb6c01b4dee665a.pdf
  • Al-Hajj, A. (2018). The Impact of Project Management Implementation on the Successful Completion of Projects in Construction. Retrieved from https://www.researchgate.net/publication/323539612_The_Impact_of_Project_Management_Implementation_on_the_Successful_Completion_of_Projects_in_Construction
  • Aranda, D. A. (2015). Service operations strategy,. Retrieved from https://pdfs.semanticscholar.org/000c/5aa543c4ade68168a3209484579ff520bb52.pdf
  • Arnold Bakker, C. M. (2010). The role of personality in the job demandsresources model. Retrieved from https://www.researchgate.net/publication/277480603_The_role_of_personality_in_the_job_demands-resources_model
  • Bubshait, A. (1996). Design Quality Management Activities. Retrieved from https://www.researchgate.net/publication/245291043_Design_Quality_Management_Activities
  • Campion, M. A. (2007). Job design: appraches, outcomes and trade off. Retrieved from https://krannert.purdue.edu/faculty/campionm/Job_Design_Approaches.pdf
  • Furman, J. L. (2003). LOCATION AND ORGANIZING STRATEGY. Retrieved from https://cdn.questromworld.bu.edu/jefffurman/files/2012/05/Furman-Location-Org-Strategy-ASM-2003.pdf
  • Pont, P. C. (2016). MANAGING GLOBAL OPERATIONS. Retrieved from https://mba.iese.edu/wp-content/uploads/Managing-Global-Operations.pdf
  • Pupavac, D. (2013). CHOICE OF LOCATION FOR RETAIL BUSINESSES. Retrieved from http://www.efos.unios.hr/repec/osi/bulimm/PDF/BusinessLogisticsinModernManagement13/blimm1310.pdf
  • Samanta, P. (2015). INTRODUCTION TO INVENTORY MANAGEMENT. Retrieved from https://www.researchgate.net/publication/317970709_INTRODUCTION_TO_INVENTORY_MANAGEMENT
  • Schaufeli, W. B. (2017). Applying the Job Demands-Resources model. Retrieved from https://www.wilmarschaufeli.nl/publications/Schaufeli/476.pdf
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