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Strategic analysis and risk of Jazeera Airways Airline

Category: Strategic Management Paper Type: Report Writing Reference: APA Words: 4000

Jazeera Airways strategic plans are to expand the frequency of travel of customers and capitalize on the current consumer base. They are focused on economies of scale model and want to expand by increasing frequency of travel at low cost. Their strategic structure is catering to gulf regions and close by where the flight time is less and multiple flights can be made within a day. Jazeera Airways is using top of the line airplanes from Boeing and Airbus. Jazeera Airways is trying to expand it routes too but is banking on its operational activities. The Company is focused on it management information system and marketing to do better. However, despite being a successful airline there are certain risks with their strategies. First and foremost, remains that they are state owned and this may bring stability but also takes away the corporate independence of governance which may directly impact the company’s decision making. Jazeera Airways is limited to the gulf region mainly with its flight concentration dense in the arab countries and neighboring countries but it is a risk with a great potential market. There are many local airlines that have started emerging in the gulf region with more specialized routes and low fares. The cost of operation for Jazeera Airways is higher than them as Jazeera Airways uses better planes and provides better services but due to flight time being less people go for the most cost effective one. One of the other risks that Jazeera Airways faces is the issues of marketing. Jazeera Airways is doing good when it comes to the marketing arena but that has an indirect contribution to the operations of the company. The strategic risk that is here is that they can outsource their marketing and work on their operations. They follow the Singapore Airlines model when it comes to use of MIS. The company should keep in mind that the niche they have chosen for them may not be utilizing all the systems in process. Not to expand on other routes is strategic suicide for the company. The risks however do not outweigh the potential and benefits in which the Jazeera Airways operate but their strategy will require innovating and staffing to adapt to change when they decide to transform and diversify their operations. Jazeera Airways have all it takes to become amongst the best. Their current operational activities with their HR department are top notch and exemplary in the scale they operate. ((will be edited))

Analysis of HRM Workflow of Jazeera Airways Airline

Recruitment and selection strategy of Jazeera Airways Airline

Selection of the employees is one of the toughest job which requires stamina and experience. A well-mannered and skilled staff can make and organization much reputable. Jazeera Airline is already one of the most famous airlines but to make it more common on the tongues of people a proper staff should be selected on different factors which includes:

Motivation to do work without making any excuses

Skills should be present

Experience is what matters a lot at the end of the day

Proper education should be present

Manners are required because staff is who deals with the customers, so they need to be polite and humble

Should be able to attain objectives

Look at the past history of the person that where he or she did worked and how she managed to do work at the previous place

Relationship with the employee is considered to be the most important strategy to make an organization better from any point of view. Engagement, proper management, participation and motivation of the staff towards the work are all of the basic and important key factors for the success of any organization.

Training and Development plan of Jazeera Airways Airline

Jazeera Airlines have a crew which is considered to be the best one. Crew of the cabin is not just from one country but the people in it come from all over the world from different nation and they speak many different languages. As the crew of the cabin have a responsibility of the people who fly through Jazeera airlines to look after then and understand what they need and what problems they face. Therefore, Jazeera Airlines spend almost five to six percent of their revenues on their training and development. If we look at other airlines, Jazeera airlines spend three to four times more.  Training and development are two main and important programs for any of the organization to work effectively. Jazeera Airlines follow a systematic approach for the training of their staff. Three step process is being used by Jazeera Airlines:

Assessment: It is a question which requires what is needed. By whom? When and where?

Training activity: It consists of objectives which includes what things can be done to satisfy the goals of the Airline.

Evaluation process: This step tells about the outcome of different activities which were being done.

Performance Management plan of Jazeera Airways Airline

Performance management plan is basically a plan which directors and workers from the Airline work with one another to make a plan, to have an outlook on the profile of the workers that how each of them is performing and whether they are making customers satisfies or not through their actions and behavior. Objectives are also being measured in this goal and how they are successful towards the organization. There is not just a single management role but are multiple which includes forecasting, monitoring and operating as well. Performance management involves the different assimilating methods which are being used for the up lifting of the efficiency of the organization through the way of developing the competence and performance of the workers in the Airline. This plan makes sure that goals are being achieved or not only in effective manner but efficient manner as well.

Factors which can influence the performances are:

Technical development

Market

Policies set by Government

Quality management

Performance related to the play

Compensation plan:

Compensation plan involves all of the components of s compensation package which included salaries, wages and other benefits. This includes that when and how bonuses can be given and how package of salary can be designed. All these things are being covered in this section.

Wages can be paid on monthly or fortnightly basis. Worker would be entitled to get a working overtime which is equal to the amount of wage being paid at the ordinary time. Apart from this additional amount is also being paid which is not less than 25% of the actual wage.

Jazeera Airlines should have certain rules for their female staff which are:

Women are prohibited to do work at night between certain hours except for the few cases.

Juvenile are not allowed to do work at night in certain areas which can cause risk to the health.

Minimum age must be 15 years.

Holidays of Jazeera Airways Airline

One holiday is given to the employee and they can take one month leave once in a year with full wage without any deduction.

Working hours of Jazeera Airways Airline

Working hours are from six to eight hours a day which can exceed in some cases but this happens only in the rare cases not always.

Sick leave of Jazeera Airways Airline

Sick leave can also be taken which but it has certain rules which are that full wage will be given to the staff if they are taking 15 days off while for thirty days 50% of the wage would be deducted.

Analysis of Marketing Plan of Jazeera Airways Airline

Situation Analysis

Situation analysis consists of analyzing external environment and address the Internal and External environment of the organization

External environment is what attracts the customers at the very first sight and it includes different parameters which are:

Economical of Jazeera Airways Airline

One of the very first factor which follows the success of any airlines is to have the sophisticated airports which should be facilitated with different cutting edge technologies to meet all the requirements of the customers. Jazeera airline has a major plan on investing and developing of such an international airports in different countries. The benefits after doing so is to enhance the enhancement of the economic growth, to make sure that the number of tourists increases to have more of the profits.

Social of Jazeera Airways Airline

As we all know that the population is increasing day after day and along with this, social factors also increases. So the profit also increases by making different airports by Jazeera airlines in different states and countries.

Technologies of Jazeera Airways Airline

As we see advancement is technologies is taking place and this new technology can affect the airline in positive as well as negative way. Make sure to make it useful in the positive way and people can enjoy it as well. Facility of online payment, ticket booking and all such things can make peoples life easy and can attract people towards the Jazeera airline.

Internal environment of Jazeera Airways Airline

Obviously no one can know how the internal environment of the airline is until or unless they don’t travel and become a part of your flight. But I guess along with the external environment internal environment matters as well. We all know that beauty attracts our eyes and same is the case with nature and internal environment of airlines. One customer would give positive feedback and refer other customer.

To be a part of the flight. Internal environment should include factors which are:

Behavior of the employee of Jazeera Airways Airline

Nature should be kind and polite. Many people are not well aware of different things so make sure that the staff is co-operative enough to guide and help the people with their positive behavior not just guiding is an important thing here but taking care should be on the top of the list. Make sure to make people comfortable as much you can because these are the things that can make their journey comfortable and they would remember you and would want to fly next time as well.

Food of Jazeera Airways Airline

Journey can be long or short, it doesn’t matter but make sure to provide fresh and warm food to the people and they don’t feel burden eating the food but they enjoy every single bite of it. Menu should be good enough and should have each and every detail on it.

Comfortable environment of Jazeera Airways Airline

Along with the staff plane and seats should be comfortable enough. There should be enough space that the passengers can drag their chairs backward or forward without causing trouble to the other passengers. Music should be light and if passengers want make sure to shut it off. These small things matters a lot and come with in the form of positive or negative response.

Budget of Jazeera Airways Airline

Budget of the airline should be not too much that only rich people can afford it but it should be fair enough so that the tickets can be afforded by everyone without getting worried. Along with this try to provide best services with low budget.

Market penetration of Jazeera Airways Airline

Business focuses on the selling of all the existing products to all of the existing markets which drives the growth strategy for the penetration of market.

Retain and boost up all the market shares of Jazeera airline products and its services

Protect the market dominance of Jazeera airlines existing markets

Enhance the usage of existing passengers

Telecommunication of Jazeera Airways Airline

Telecommunication is the vital and most happening element in everyone’s daily life. So while travelling and communicating with others who are the loved ones would be very good addition to the services of Jazeera airlines. Now people must be thinking that how it can be done? This can be done just be the adding of some infrastructural changes on the aircraft so that communication and partnership with the provider of telecom can assist in the deploy basis. Currently, Jazeera lines is using very high expensive telecommunication methods for the making of voice calls and internet and changes can be done to make voice calls and data calls with the mobile phones while travelling in a plane through the trusted telecom providers.

Opportunity Analysis of Jazeera Airways Airline

Opportunity analysis will help top management to forecast and evaluate the product or services opportunity in selected market. Here, marketing analyst should have clear answers based on facts, figures and market needs if the business owners should launch or start new business idea or they should wait or cancel. For example, if Jazeera airways want to have new destination to a specific destination, let’s say for example Damascus, the analysis should show if this is a good idea of not based on facts. I believe there are a lot of excellent opportunities for Jazeera airways either by offering new destinations or offering better services.

Targeting and Positioning process of Jazeera Airways Airline

To do so, Jazeera airways will need to create a segment which will help marketing department to focus on targeting by promotion and strategic decisions. The five process of segmentations are; define target market, Market mapping, construct market model, identifying segments, segmenting. To conclude the segmentation part, Jazeera is targeting people in Middle East region who are looking for cheaper ticket cost. These segment will be our targets on promotions and advertisements and decision making. Positioning is the process of how Jazeera airways position itself, and how its customers will view it. Jazeera should be seen as the affordable, on-time, moderate airlines.

Marketing Strategy for product and Services of Jazeera Airways Airline

The marketing Strategy of Jazeera airways is to focus on maintaining and increasing the number of customers by offering them affordable fares for moderate services for short distance trips. Jazeera rely on cutting the costs of some of operation and marketing activities to be able to offer customers affordable tickets.

Customers, most of them are Arab and Asian Employees and Kuwaitis who want to have short trips in Middle East, Asia, or North Africa, will be able to purchase tickets online and enjoy Jazeera new terminal, which will make Jazeera offer excellent service, less crowded terminal in cheaper fare.

Pricing, distribution, promotional mix of Jazeera Airways Airline

The competitive advantage of Jazeera airways is to offer affordable, or cheaper tickets if we compare it to the market. In addition, Jazeera also offer Business class level or fast entrance and extra luggage kind of service, which is more expensive than the regular economic tickets. To attract more customers, more destination, especially for Asian Countries such as Nepal, India and Pakistan will be a good idea. These kind of offers will require special promotional mix of advertising, special promotions, and of course personal selling. 

Budgeting of Jazeera Airways Airline

Budget will require the company to have a list of activities, events, campaign or methods it will implement on annual basis. This kind of planning will help the organization to have roadmap of activities, therefore they can easily budget these activities and stick to the plan.

Deliverable 3

Level of diversification of the Jazeera airways of Jazeera Airways Airline

There are three level of the diversification which are using as the diversification strategy of the Jazeera airways. These three level strategies can be divided into three parts as low, moderate and high level of the diversification strategy.  Before discussing the level of the strategy it is most important to knowing about the diversification strategy and why it required for the Jazeera airways. Jazeera airways needed the various level of the diversification but it involves all time in the various activities as some time introducing the new products in existing markets and sometime its require for introducing the existing products in the new market (White, 2013).

These three levels of the diversification which are using in the Jazeera airways are further categorized in to various types for differentiating the task of the Jazeera airways according to its revenues and overall performing activities.   This diversification strategy can enhance the revenue of the business and sometime it can identify the revenue which Jazeera airways are deriving from its various businesses (Kang, 2013).

Low level of diversification of Jazeera Airways Airline

Low level of the diversification strategy is further divi9ded ion to various two parts as single and dominant business strategy. Low level diversification strategy can be describes as the uses of the dominant and single strategies and it also included the corporate level diversification strategy. It includes the percentage of the revenue Jazeera airways which it is generated from its various businesses.  

Single business strategy of Jazeera Airways Airline

Within that industry Jazeera airways main business is providing the services and tickets about the journey of the various passengers as well as it has largely stayed. Through the Jazeera airways concept Jazeera airways continuously encourages diversification. Jazeera airways usually made that type of item which everyone fond of. Jazeera airways is gaining it 95% revenue from its core business are as providing the tickets to the passengers.

Dominant business strategy of Jazeera Airways Airline

Jazeera airways is involving it 70 to 95% of the sales revenue from its single business strategy and this revenue is generated from the single business area as it involved in performing the all business strategies from its core area.

Moderate and high level of diversification of Jazeera Airways Airline

Jazeera airways is invalid in gen ration 30% of its revenue from the outside of the dominating business and there many business which are similar to providing the functioning seem like Jazeera airways   and these all business are also using the corporate level strategy for the diversification. There are type of moderate level strategy as related constrained diversification strategy and related linked diversification strategy

Related constrained diversification strategy of Jazeera Airways Airline

The limited diversification is described as within one industry as well as market when a firm stays and most or else within a single business all of its business activity is focused otherwise dominant the business. Jazeera airways    implement this stage when the several strategies linked between the various strategies of the diversified firms. This strategy is also required when the Jazeera airways    is involved in sharing of activities and resources for its various business (Neffke, 2013).

Related linked diversification strategy of Jazeera Airways Airline

Jazeera airways have few links among the resources and activities of the business and the strategy is also leads toward the Jazeera airways for the unrelated firm. Jazeera airways are also sharing its assets and resources among their business and it is also involved in the concentrating for transferring their business resources in to various criteria of the business (Neffke, 2013).

High Level diversification of Jazeera Airways Airline

Less than 70% of the revenues of the Jazeera airways are gaining from the dominant area of the business as for providing the services to the various customers. Jazeera airways are also following and implement the unrelated diversification strategy and value creating diversification strategy. Jazeera airways is using the value creating diversification for saving the cost which is created by the Jazeera airways success fully and it is also used to sharing and capabilities and resources. Jazeera airways are also using this strategy for developing the corporate level core competencies (Mamos, 2016).

Reasons for diversification by the Jazeera airways of Jazeera Airways Airline

Jazeera airways is using the diversification strategies by implementing it various level to enhancing its business , to expanding the operation of the Jazeera airways and it is also used to adding the products, services, markets and the several stages of the production for the existing business.  The major purpose of the diversification it allowing the Jazeera airways to entering in the several lines of the business which can be differ from the current operations of the Jazeera airways. Jazeera airways is performing it function at international level by introducing the various products and services in the existing and new markets.

To creating the opportunities is the best task of the organization to launching it business in new market. The Jazeera airways can expand its business on the map of the entire world by identifying various opportunities. The first major opportunity which is adopted by the Jazeera Airways is increased market size. By increasing the size of the Jazeera airways can expand its businesses and its operations at the huge level.  Jazeera airways can expand its business in new market by providing the cargo services to importing and exporting goods, passengers and facilities. Jazeera airways are using these opportunities to achieving the goal of the business.

Jazeera airways has opportunity of the return on investment because if the Jazeera airways is providing the low return investment its profitability can be increased by it meanwhile if the Jazeera airways is giving the high return on investment it can be the cause of decreasing the profitability of the Jazeera airways. Return on investment also can be the cause of the improvement in the Jazeera airways because if the investors of the business are satisfied then the business can grow in good way.

Economies of the scale is the best way for the improvement of the Jazeera airways because if the scales of the economies will be higher for the economy of the country. Jazeera airways has various opportunities to engaging in finance which is used to providing management services for the assets for supporting the technical aviation of the companies. Jazeera Airways has the capability of conducting air cargo businesses outside as well as inside Kuwait within the law stipulated limits. The major opportunity of the Jazeera Airways is management this capability is valuable, rare, and, costly to imitate, but not non-substitutable because of various opportunities and space in the industry.

The management capability is the third capabilities which is valuable, are as well as costly to imitate but not non-substitutable due to different opportunities as well as the space for the industry. Marketing is the fourth capability that is the valuable, and imitate for the costly as well as non-substitutable due to the quality risks as well as efficiency which is something that cannot be compromised through customers. Since this is not are where almost every company tries for the best to create the customer services. Management on formation systems is the fifth capability which is also the valuable, rare as well as the non-substitutable, but also the costly to imitate, due to expert for the oriented capability.

As above describe the opportunities of the Jazeera Airways. Following strategy is applied on the Jazeera airways like the five porter’s analysis. More unique corporate level strategies  that now a day’s used  or applied in the Jazeera company that is about the resort, Hotel as well as tourism strategy. Also the PESTEL analysis is done for the Jazeera Company. Jazeera is a one strong brand also the well known company and also the strong business.

With the craft leasing business the Jazeera strategy is to eliminate many risks that connected. On a leased fleet model operates the asset light airline. On the above project we discuss the all corporate and international level strategies that apply on the Jazeera airways. On Jazeera airways total focus on airline as well as complementary business. To increase with the critical mass leasing business would be intensive capital.

References of Jazeera Airways Airline

Kang, J. (2013). The relationship between corporate diversification and corporate social performance. Strategic Management Journal, 34(1), 94-109.

Mamos, T. W. (2016). The legacy of a vanished sea: a high level of diversification within a European freshwater amphipod species complex driven by 15 My of Paratethys regression. Molecular Ecology, 25(3), 795-810.

Neffke, F. &. (2013). Skill relatedness and firm diversification. Strategic Management Journal, 34(4), 297-316.

White, A. E. (2013). . Putting all your eggs in one basket: Life-history strategies, bet hedging, and diversification. Psychological Science, 24(5), 715-722.

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