Emirates. Report on Organization and Decision Making Process

Emirates. Report on Organization and Decision Making Process

Name

Professor

Course

Date

Emirates

Table of Contents

TOC o “1-3” h z u HYPERLINK l “_Toc373154170″Report Requirements PAGEREF _Toc373154170 h 4

HYPERLINK l “_Toc373154171″Section 1 – Report on Organization and Decision Making Process PAGEREF _Toc373154171 h 4

HYPERLINK l “_Toc373154172″Section 2 – Study of Systems for supporting decision making PAGEREF _Toc373154172 h 4

HYPERLINK l “_Toc373154173″Section 3 – Sample prototype of a simple dashboard in Excel using Pivot tables and Charts PAGEREF _Toc373154173 h 4

HYPERLINK l “_Toc373154174″Section 4 – Conclusion and Reflection PAGEREF _Toc373154174 h 4

HYPERLINK l “_Toc373154175″Section 5 Bibliography and Academic Honesty PAGEREF _Toc373154175 h 5

HYPERLINK l “_Toc373154176″Academic Honesty PAGEREF _Toc373154176 h 6

HYPERLINK l “_Toc373154177″Statement of Academic Honesty PAGEREF _Toc373154177 h 6

HYPERLINK l “_Toc373154178″Marking Criteria/Assessment Rubrics PAGEREF _Toc373154178 h 6

HYPERLINK l “_Toc373154179″Appendices PAGEREF _Toc373154179 h 7

HYPERLINK l “_Toc373154180″Appendix 1 PAGEREF _Toc373154180 h 7

Section 1

Report on Organization and Decision Making ProcessSummary of the organization/department, its products and services and core business activities

Emirate’s is a national airline of Dubai in the Middle East. Emirates operate to more than 100 destinations in 60 countries globally from Dubai International Airport with a fleet of 137 aircraft. The organization was established some 25 years ago. Even though Emirates is a young airline, over the last 10 years, Emirates has become one of the most reputable brands in the world. The key feature towards their success is using new technology and information systems in all its business operations. Generally, Emirates’ growth has always been over 20 per cent annually, and the airline has never recorded a loss. The organizations effort is to carry on its volatile growth and boost the percentage of this growth. Currently, Emirates’ flights account for almost 40 per cent of all flight movements in and out of Dubai International Airport, and their purpose is to increase this market-share to 70 per cent by end of 2010 without destroying its image for quality. Furthermore, the airline is adding 18 new passenger aircraft to their fleet, and increase seating capacity by 14 per cent. The company has a plan of increasing frequencies on many existing routes and expanding cargo capacity by 17 per cent.

Products and services

Most products offered by Airline Industries are essentially services, though some physical products may supplement the services. The services offered by Emirates Airlines include:

In-flight services

On ground services

Some of the in-flight services offered include, the travel, crew and entertainment services among others. This is highly different across various competitors based on the brand and the various classes of travel. The On-ground services include, a suitable airport with sufficient car services, waiting lounges for travelers, effective checking for luggage among others. In some airports, the physical infrastructure forms part of the on-ground services though maintained by the airports authority, however, in Airlines like Emirates, the lounges for customers are separate from other services.

The core product provided by Emirates is the service of transporting passengers and goods to their destinations. Some of the supplementary services are:

Customers obtain up to date information about the flight schedules, ticket prices, promotion scheme, and new regulations among others. Additionally, Emirates offers products such as packaged tours for its customers. The Industry as well offers various alternatives concerning the route of flight. Emirates as well provide order-taking services, which essentially entails the booking process of the customers. With high competition in the Airline industry, Emirates uses hospitality and caretaking service as major differentiating factors. These services include taking care of customer’s luggage. EMIRATES Airline core activities include distributing aircraft parts to the military and private corporations. With its internal experience, Emirates Airline is one of the leading UAE companies in its field. Its core business is expanding year after year.

Management structure and examples of decisions made by each level .This information must be specific to the selected organization/department.

Management structure refers to the allocation of tasks based on job descriptions to different employees with the purpose of achieving the company goals. Any company selects its management structure based on the size of the company and the type of business activities its conducts. For example, for the small-sized companies, they prefer using the face-to-face communication since formal structure may be costly to them. On the other hand, for the large organizations management is entitled to make decisions based on departmentalization. The managers establish procedures that allocate tasks for various functions. Such decisions are the ones that determine the management structure of a certain organization. Within the organization regardless of its size or complexity of the activities, the responsibility assigned to every employee determines their tasks within the organization, and the persons to whom they report. Emirates Airlines has a centralized organization structure with the executive management holding the biggest share in decision-making. The Aviation industry is divided into various departments, which are further alienated into subgroups. The CEO and the chairperson occupy the topmost position in the company with one person occupying the posts. The vice chairperson follows the hierarchical order. Emirates Airline is divided into three departments that include engineering and operations, sales, cargo and facilities purchase and logistics.

These departments are further subdivided into other departments based on different forms of specialization. The key objective of Emirates Airlines is to provide quality services. All operations ensure customers receive quality services starting from maintenance of the fleets to offering after sales services. Consequently, Emirates market share is increasing on daily basis. Emirates Airline approaches enables it to accomplish its objectives. The firm uses many resources training its employees to ensure they provide quality customer services. The approaches used ensures the Airline have the best labor that increases its competitive advantage. In addition, the company operates independently as opposed to other airlines, such as, Star alliance that depend on partnership to survive in the airline industry. The approach allows the company be flexible during decision-making process and operations. Moreover, the Airline manages general corporate citizenship and social responsibility schemes that markets its brand image while maintaining customers’ loyalty. In addition, the firm has diversified its products’ range by engaging in other business-related activities such as hospitality and logistics industries.  Emirates Airlines maintains the culture of respect both internally and externally. The firm emphasizes on value on social responsibility and corporate citizenship and ensures that business ethics is fundamental to its success.

In Emirates Airline, the top most personnel implement the strategic decisions. The decisions made at these level are medium range, medium importance with minimal consequences. For instance, in Emirates one of the key strategic decisions is annual increase of profits. Hence, the critical decisions implemented by the middle level managers entail how the middle process helps in making the decisions successful. The data that drives in making such decisions are contained in routine transactions such as the sales orders. The decisions on determining the ticket prices or even providing a low priced ticket or even offering some seasonal promotion with the aim of attracting more customers are some of the decisions by the executives. Another critical decisions made at the critical level is determining most favorable booking policy for multiple fare classes

Decision Making Process explained with ONE example that is relevant to your organization. Use a diagram to illustrate this section.

In most cases, the executive find themselves in a dilemma in making corporate decisions involving producing new products and services to continue enjoying competitive advantage over their competitors. Most of the decisions are intended to increase revenue growth and improve the effectiveness of productivity. Some of the decisions made at the knowledge level are implemented engineers and designers. The type of decisions made include creating new investment, devising new career paths and recognizing new markets. The information, needed for this level is structured internal knowledge such as research reports, product-oriented marketing metrical and techniques and methods, as shown by the diagram below.

Discuss business value of decisions and impact of good and bad decisions on organizations

Good decision-making process involves avoiding making mistakes. When one person implements and approves decisions, there is likelihood of committing the work outcomes, and this indicates the value of involving other people in decision-making process. Therefore, decisions initiated without following any strategic plan are likely to yield poor outcome.

Section 2

Study of Systems for supporting decision makingShort definition of ONE of the following systems used to support decision making: MIS/DSS/ESS

Decision Support System (DSS)  

A decision support system (DSS) refers to an information system application that helps in decision-making process. The system is applicable in planning, evaluating alternatives, and trial and error seeking for solution. The components that make up the decision support system comprise a database, model base & software. The key application areas of DSS are Production, finance and marketing.

Describe how the selected system is used in your organization

Management information system (“MIS”) and Decision-support system (“DSS”) are two significant information systems that support movement level. Management Information System mainly entails internal sources of information and usually uses data from the Transaction Processing Systems and financial report summaries. The Budgeting system used to prepare short-term budgets is an example Transaction processing system. This system provides all the Emirates financial reports used by the middle level managers.

Decision support systems (DSS) apply information technology to support in decision-making process. Michael Scott-Morton, the inventor of DSS defines DSS as an information technology system that assists the management in making quality decisions. It is a computer –based support system mainly used by decision-makers in solving semi-structured problems. Even with such a definition, some problems remain unanswered. For instance, what data serves as inputs and output in the decision making process, what is the structure of decision-making process and so forth? Eventually, regardless of the questions that remain a puzzle to many people, organizations must use the system to make quality decisions. The major components of DSS are quite common, and comprise:

Decision-maker- this is a person entrusted with the responsibility of making a decision

Inputs used in the decision-making process, such as data, numerical or qualitative models for interpret that data, historical experience with similar data sets or similar decision-making situations, and different forms of cultural and mental values and controls linked with decision-making.

Decision-making process itself: these entails decision-making steps that help transform the inputs into outputs.

Outputs from the decision-making process – these entails the decisions made against the demands of the organization.

Emirates as well use the Pricing Analysis System in determining ticket prices and promotions. The organization also uses Decision-support system (“DSS”) to assist the management implement decisions in circumstances where there is ambiguity about the possible results of those decisions. DSS helps in collecting fundamental information and evaluates the options and alternatives. The system also provides spreadsheet and databases to create “what-if” models, and leaves managers with the best decision to make. A relevant example of DSS in Emirate is Compensation Analysis System. This system offers a complete impression of the organization expenditure; examine wages, salaries and benefits for the manager.

DSS assists the company in making generic decisions in various ways. First, while preparation to make decisions, DSS helps avail data essential as input to the decision-making process. The system also assists in decision structuring by providing tools and models that arranges the inputs in techniques that are sensible in structuring the decision. The tools and models used are real decision-making tools and not pivot tables and other forms of data presentation found in inquiry tools. Other than providing decision-making tools, the system also interprets the persons affected by the decisions, the outcome of the decision and other elements. In addition, the DSS also automates either a part or the entire decision-making process and provide assessments about the best decision.

What is the software/technology used? How does it fit into the other ERP systems used in the organization? Describe the inputs and outputs to this process.

Emirates Airline is one of the fastest growing global airlines and has currently adopted Google Now™ cards for its passengers that book through Emirates website. The technology is a key feature of the Google Search™ App. Google Company has integrated the technology with Android™, iPhones and iPads. The technology fits well into other ERP system. An Enterprise Resource Planning system is an integrated computer-based application that manages the internal and external resources such as the financial resources, Tangible Assets, Materials, and Human Resources. The purpose of the ERP system is to allow flow of data between various internal business functions and manage the relations with the external stakeholders. ERP systems fuse all business functions into a standardized and Enterprise-Wide System Environment.

Application of ERP system into various business functions helps mechanize business processes to boost business competence and provide improved visibility. In most cases, companies struggle to integrate their new technologies with their existing enterprise systems to meet rising business needs. ERP integrates different cross-department systems, resources and processes, including production capacity, inventory and accounting, on one software solution. This provides essential capabilities for wholesalers, distributors and manufacturers looking for new ways to stay ahead of changing customer, market and industry requirements.

How effective is this technology? Discuss gaps or shortcomings

Google Now technology functions like a smart personal helper that provides travel information to passengers. Furthermore, passengers obtain the information whenever they require it without many hassles. In addition, the technology keeps reminding the passengers about any incoming flight by giving flight times and departure terminals. The technology updates passengers about their destinations, for instance, weather conditions, exchange rates, accommodation and any other pertinent information.

Section 3

Sample prototype of a simple dashboard in Excel using Pivot tables and ChartsSample data tables relating to ONE of the following functions exported to Excel Customer satisfaction feedback

Customer satisfaction relates directly to profitability. If the customers are happy, they become loyal to the company. Moreover, when they are loyal, they buy tickets from the company as well as referring other customers. Well-established research by Emirates affirms that an increase of 5% in customer retention is likely to increase the profits by 25% to 95%. The research also noted that it costs over six to seven times more to obtain a new customer than to maintain an existing one. In gathering information feedback from customers, the company provides a questionnaire with the following questions.

Questionnaires

Why would you choose to use Emirates services instead of similar services of other brands? Please rank the importance of following reason 🙁 1=Unimportant 5=Very important)

A. Lower price

2

Famous brand name

4

More functions

4

Better services

4

Trendy

4

. More after sale services

4

Do you satisfy the function of the Emirates services? (1=very unsatisfactory 5= very satisfactory) 3

Do you satisfy the after sale service of Emirates? (1=very unsatisfactory 5= very satisfactory) 4

Are you likely to reuse the Emirates services? (1= very unlikely 5= very likely) 4

Are you likely to recommend your friends to use Emirates services? 3

Are you likely to gain confidence after using the Emirates services? 3

Are you likely to use Emirates services if the travel price increases 10%? 3

Are you likely to use promotion service of Emirates? 3

Images of 3 Pivot tables showing data in more than one dimension/time period. Describe who would benefit from the use of this summary, the problem that it can help to solve and the type of decision that can be made based on this information.

A PivotTable facilitates Excel users to sum up information in a simple format. The users are able to arrange the data in an easier way that help them sort out any information required without wasting time. A PivotTable is an important tool because it allows decision makers to swiftly respond to information before them and use it to making quality decisions. In competitive environment, the quality and the speed at which the management makes decisions is crucial. In some instances, executives may make wrong decisions, and having the correct, up-to-date information may minimize the risks.

Conclusion and ReflectionEstablished on 25th October 1985, Emirates is an international airline of the United Arab Emirates, based in Dubai. It has evolved into a globally influential travel and tourism firm in just a few short years. The airline currently flies to over 100 destinations in 60 countries around the world and the network is expanding rapidly. The airline has recorded a profit in every year except its second year of operation. Emirates Company operates on two key features, a continuous explosive growth and a constant focus on providing top quality services.

Section 5

Bibliography

Deresky, H. International Management: Managing Across Borders and Cultures, 7th Ed., Pearson Prentice Hall, Upper Saddle River,2011 NJ. ISBN-13: 978-0-13-609869-0

BizMinerIndustry financial report (5 year); [3254] Sector: Manufacturing; sales class: $250- $499.99m., 2011. Retrieved from the BizMiner database

Financial Accounting Standards Board (FASB). Accounting standards codification TM, 2010

Appendixes

Decision making process at top executive levels

Appendix 2:

A prototypic decision making process