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Emirates Airline Organizational Behavior

Essay by   •  February 28, 2013  •  Case Study  •  1,812 Words (8 Pages)  •  2,083 Views

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Introduction

Emirates airline is one of the most reputable organizations in Asia and other parts of the world. The company has been in operation for about 23 years now. It is a government owned organization. The company flies to approximately 90 destinations around the world. In this case, it is able to reach more than 60 countries in the world. The company has its main operations in Dubai which is the capital city of UAE. Moreover, Dubai is regarded as one of the fastest growing cities in the region. Therefore, this company has been able to shape the reputation of the country from an oil destination into a tourism destination. The Emirates Airline was established when it had two carriers. Moreover, the initial investment of the company was approximately $10 million (Management Guru, 2012).

The government is the one that started this initiative. In the first year of operation, the company started its flight in Karachi. It started its European operations to London in 1987. After 3 years, the company was able to double its operations. As a result, it was able to grow at annual rate of 25%. Despite the fact that the company is serving over 90 destinations in the world, it has also managed to receive precious awards internationally. The revenue of the company today is approximately $11.8 billion annually. It employs approximately 36,000 employees. Moreover, the number of international passengers between 2009 and 2010 was approximately 25.9 million (Reportlinker, 2012). This made the company to rank number 7 out of all the major international airlines.

The number of flights that the company is able to reach per week is approximately 2400. The goal of this paper therefore is to discuss the behaviour of Emirates airlines by studying its PETS and SWOT analysis. These will help to identify the various problems that are facing the organization today. Moreover, they will help to explain why the events are happening today. It will analyse the challenges by adopting the OB theory of X and Y. It will also discuss the leadership personality traits and the conflicts within the industry.

Discussion

Emirates airlines is a government owned entity. As a result, it is normally subjected to a wide range of government policies. As a result, the working stance of the company has been limited. The Middle East is an area that is characterised by various forms of political unrest. As a result the Emirates airline is characterised by as wide range of challenges in terms of delivering its services that are located in the Middle East. Despite the fact that UAE is a peaceful area whereby visitors from various parts of the world can visit, some parts of the Gulf and Middle East are normally characterised by various forms of uprisings (Management Guru, 2012). As a result, the company has been unable to receive visitors to in the region in an appropriate manner.

Moreover, there are various airlines that are being established in the region which are posing challenges to the airline. For example, Qatar airways and Etihad Airways have become popular in the region thus threatening the profitability of the company. Though the companies have not yet broken even, the strategies that these two companies are adopting have attracted a wide range of customers. For example, they have been able to offer airline services at a price that is less than the prices that the Emirates Airline charges (NetMba, 2012). As a result, the company is witnessing a significant drop in its customer base.

Emirates airline is a reputable company in the Asian Pacific continents. In this case, the company has been able to market itself well in the region. As a result, it has been able to emerge as one of the most successful companies in the region. The airline market in the region is includes Emirates (39%), Air India (2%), Gulf air (8%), Qatar airways (13%), Sri Lankan airlines (4%), Singapore airlines (26%), and Thai airways (8%). In this perspective therefore, it is evident that the company is facing serious threats in its operations (Free Swot Analysis, 2012). Moreover, when the company is analysed among various destinations around the world, the positive and encouraging results cannot be seen in the region. For example, regions such as Australia have not embraced the services that the company offers.

\ In his perspective therefore, it is evident that Emirates has not been successful in terms of improving its performance in the world market. The most successful companies in the world are the ones that are able to adopt a global dimension. In his case, they are able to spread their operations to the major destinations in the world. When a company develops overreliance on one region, it may experience a downfall which may result to an economic downturn. For example, a company may be faced with an airline disaster and may be unable to recover in case of a natural or a man-made disaster (Free Swot Analysis, 2012).

Studies reveal that Emirates is conservative with regard to the issue of labour unions. As a result, the company has been unable to diversify its Airline operations. In this case, it is evident that the company fears issues such as high labour costs thereby limiting the company's improvements processes. By adopting these strategies, the company will be limited in terms of expanding its expansion strategies as well as limit the returns to the organization (Free Swot Analysis, 2012).

Research indicates that he overall air transport in the region has improved

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