Both unit variable and unit fixed cost must be considered while fixing the cost for ticket. The major advantages of full capacity operation are: Decrease in unit fixed cost: Since the capacity utilization and fixed cost per unit is inversely proportional, an increase in the former would reduce the unit fixed costs. In case of Qatar Airways, the company promotes a professional attitude among its employees. This would affect the name or reputation of the company. London The airway has also incurred high capital expenditure last year to buy new airplanes. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. Qatar Airways has a very good economic position in the airline industry. 41 0 obj 5.4.2 Analysis of Qatar Airways. In the case of Qatar Airways the capacity utilization must be done properly so that the maximum usage of the resources can be done in the most effective manner. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Strategic direction by organic growth, mergers & acquisition, or strategic alliance A Comparison of Human Resource Strategies between the Manufacturing and the Service Sector of Japanese Companies in China. Interviewed 10 people between the age of 22-56 with different lifestyles. f5d06e61a46f57a7f674075aa008114920f60c1f Generally, the employees represent the face of the organization. By the use of the SCAMPERideation process I developed 4 key suggestions to take forward. CASE STUDY 2 Case Study: Qatar Airways Market Positioning Abstract Qatar Airways is among the largest companies found in the Middle East, however, business has not been all rainbows and unicorns; there has been a stiff competition from other air companies from the region which have higher brand value. <>stream Thus the total unit cost would also be less. So, the airway company has really managed well to limit the amount of carbon emission it causes and thus also satisfied various stakeholders. Leaders who utilize the authoritarian style of leadership give orders, are involved in most if not all decisions, and expect absolute adherence to their directives. Following are the legal factors in the Qatar Airways PESTLE Analysis: Legal factors include various national and international laws which a company must follow to avoid intervention of government and international bodies in the operation of the business. (2015). Aircraft . for only $16.05 $11/page. This has really put a very adverse impact on the whole airline industry. One of the factors that have been proposed is the human resource management strategies employed by the industry. In this report, we will discuss the strategic performance objective of Qatar Airways which is based on five key characteristics i.e. Demand is building. Lesser innovation: If the firm is running in full capacity then there is little possibility of improvement. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Browse analysis of more brands and companies similar to Qatar Airways PESTLE Analysis. Also, the respondents will only be chosen depending on their willingness to participate in the research. This way the business would be stagnant without any innovations. To conclude, the above Qatar Airways PESTLE Analysis highlights the various elements which impact its business performance. It can be seen that as capacity utilization decreases the cost per unit also decreases. This means as capacity utilization increases, the unit fixed cost decreases. Some customers also get attracted offers while booking their ticket which increases their level of satisfaction with the company. InInternational Scientific Conference Science and Traffic Development. However, Rice remarks that human resource management strategies can be used to save the future of a company and that not every company faces the risk of closure in the first five years into operation. Uitzinger, D., Chrysler-Fox, P. and Thomas, A., 2018. Research has been conducted concerning the role of human resource management strategies. There is no obligation to behave in a particular way. The airways industry is one of the riskiest ventures to invest in, and clever strategies are required to overcome the various challenges. Below are the economic factors in the PESTLE Analysis of Qatar Airways: Qatar Airways has a very good economic position in the airline industry. Airways. The day was historic on many levels: it was the first time a Middle Eastern country was awarded the right, the first time FIFA awarded two tournaments at the same time (with . Qatar Airways, Airbus reach settlement in A350 legal case. References. But it doesnt mean there are only advantages to this method of operation. Belmonte, J., 2017. Due to COVID-19, people now avoid travel due to fear of infection. But economy seats are usually more in number when compared with the business class seats. Hence with decrease in capacity utilization, the unit cost is also affected but in two different ways. Concerning, the first variable; since 2004 the Air community saw the incredible global expansion of the Gulf airlines: Emirates, Etihad and Qatar Airways. endstream Having trouble finding the perfect essay? Indeed, its vision states "To be the world's leading airline group air, ground and people safety and health" (Qantas , 2013 ). Belmonte studied the transport system in the Asian countries in 2017 and picked Qatar as a case study. The customers are very happy with the service, good and experience they had during travel with the airways. Its headquartered is in Doha, which is the capital of Qatar. Its legal case detailed how the Qatar Civil Aviation Authority (QCAA) had. The study was carried out by O'Connell (2016) in his journal titled "A study into the hub performance Emirates, Etihad Airways and Qatar Airways and their competitive position against the major European hubbing airlines." Table 1. 87 0 obj Thus the result will be absenteeism and employee turnover. The following formula is used for calculating capacity utilization: Capacity Utilization (%) = Actual output per month (or per annum) x 100%, Maximum possible output per month (or per annum). MANGU S The study was carried out by O'Connell (2016) in his journal titled "A study into the hub performance Emirates, Etihad Airways and Qatar Airways and their competitive position against the . endobj Purchasing more raw materials/stock- If there is more raw materials, then the firm could use them for production and hence increase the production capacity. ANALYSIS. Hirsh, M., 2017. The recommended strategy for Qatar Airways is to divest and prevent any future losses from occurring. It is because the firm will have to employ more staff, buy more raw materials as well as build more infrastructures. endobj For example, the employees of Qatar Airways are in a better place to explain whether human resource management strategies have been positive. 195 0 obj There exists two kinds of unit cost- unit variable cost and unit fixed cost. This have really affected the revenues of the company. 593349 Students looking for free, top-notch essay and term paper samples on various topics. International airline Qatar Airways wanted to host a special VIP event to coincide with the launching of its new route between Doha in Qatar and Kampala, Uganda. A master video spec (video style guide) was developed and then circulated across over 40 local crews. This way the business would be stagnant without any innovations. endobj First, the information collected in the course of the study will be treated with the utmost confidentiality. Also the flight region also alters the seat occupancy of scheduled flights. This is applicable for Qatar Airways also. 50 0 obj Geo-political crisis: The Middle East and Saudi-led barrier of Qatar's land, sea, and air borders with Qatar were big threats to Qatar Airways in the last several years. Thus employee management will be a difficult process to be handled by the management. Moreover, a case study of Qatar Airways was ideal since the firm ranked best and was still fast growing compared to all other leading airlines. Study for free with our range of university lectures! The airline followed all safety rules to ensure that various stakeholders are happy with the operation of the business. Also, a mixed approach that involves the use of both qualitative and quantitative methods is not needed in this study. Generally, a quantitative approach involves the examination of variables and the measurement of the relationship between them. "Etihad Airways-Airbus A380-861" by R. Vandervord, used under CC BY-SA 4.0 / changed original background . *You can also browse our support articles here >. 1 spot owing to its "cabin innovation, passenger service, and its commitment to continue to operate throughout the COVID pandemic.". Qatar Airways, is the state-owned flag carrier of Qatar. Qatar Airways' rise to success from a relative unknown to a global influence is nothing short of inspirational. Why? A firm is considered to be operating in full capacity when the installed capacity as well as available resources is being utilized to the maximum. Sub-Theme 1: Employer Involvement In Duty Execution The unit cost of a product is greatly affected by the capacity utilization of a firm. This way they are denied of any time for leisure and entertainment. Managing the fleet is another factor which helps Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. This study will, therefore, seek to assess the role played by human resource management in the development witnessed and the company. To become industry leader in the airline industry, the company cannot think of ignoring environmental factors. When customers are not satisfied with the services offered by a company, the chances are high that the customers will move to other companies unless the business in question is a monopoly. There are also certain disadvantages to it. L'objectif de cette diffusion tant de gnrer un maximum de visites sur le site de la marque. On November 30, 2011, Qatar Airways Company with Limited Liability (petitioner) filed, through the Electronic Filing and Payment System (eFPS) of the Bureau of. Customers go for companies that treat them with respect and offer high-quality services hence a continuous customer network. Performance assessment of human resource by integration of HSE and ergonomics and EFQM management system: A fuzzy-based approach. The visionary statement of Qatar Airways is to turn out into a superlative carrier and cargo service provider. endobj Also innovation can be brought about. The confectionery strategic business unit is a question mark in the BCG matrix for Qatar Airways. If you need assistance with writing your essay, our professional essay writing service is here to help! Adoption of new technology helped the company in increasing its customer base and at same time increase financial performance of the business. They can invest this profit for new ventures and expand. As countries now have become more globalized, the number of people moving across the world have also increased. Qatar Airways said an "expedited trial (would) provide a swift resolution of this unprecedented dispute" and allow it to assess the cause of damage to aircraft that Qatar has grounded. Generally, the human resource management department is responsible for the maintenance of a focused and goal-oriented employee network. It has had huge profits which indicates that financially the company is sound. 2 0 obj Rothenberg, S., Hull, C.E. However, safety has been always their first priority. Enhanced brand value: A high growing organization will naturally be successful. Qatar Airways is a success story that goes beyond borders despite growing in a country that invests heavily in road transport. But at the same time the unit variable cost is increased to a little bit as employee wages are considered as overheads. application/pdf The government control its operation and has started various new routes for the airways. Its largest international Airline, Qatar Airways, is amongst the best airlines in the world, and has one of the most extensive route networks, internationally (Qatar Airways, 2010: n.p). The fuel consumption is a very important factor in airline industry. This would help them in reducing the unit fixed cost as well as unit variable cost. Although a single case study may be viewed as an insufficient case in the event of generalization, the conclusions obtained from a single case study are clear, and generalization may be easier than where several case studies are considered. Satisfied various stakeholders are happy with the company used under CC BY-SA 4.0 / changed original.! A very adverse impact on the whole airline industry that treat them with respect and offer services. Be chosen depending on their willingness to participate in the research and has started various routes. Be successful, people now avoid travel due to fear of infection but economy seats are usually more number! 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More infrastructures its legal case of human resource by integration of HSE and ergonomics and EFQM management system: fuzzy-based... Little bit as employee wages are considered as overheads the unit cost of a focused and goal-oriented employee network strategic! Support articles here > x27 ; objectif de cette diffusion tant de gnrer un de! For new ventures and expand with different lifestyles of university lectures this have really the.

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