ROYAL COMM AIRLINES

 ROYAL COMM AIRLINES

1.0 INTRODUCTION

The Royal COMM airline sector has seen rapid growth from 2006. The freight business has been doing well over the last era, but the pattern has also been decreasing over 2015. Royal COMM has given over two and a half solid years to the current management to raise the productivity of the firm. The object of the task is to objectively analyze and evaluate the hypotheses behind its operation of the airline industry. The study would examine the cooperation strategy, the business model, and the marketing plan and the effect of the approaches on the competitiveness of the product. The methods will be applied by evaluating tools and hypotheses like PESTLE, Porter’s 5 Powers, SWOT analysis, VRIN, Ansoff Matrix, and Bowman ‘s benefits Clock. Choices on operating capital, HR, partnership governance, organisational management, alignment of the organisation with the vision, mission, and goals will be addressed (Sultan, 2019). Unique choices occupied by the organization, and the coordination amongst all the defined working will also be analyzed. Suggestions should be made to help the business achieve success.

2.0 ROYAL COMM AIRLINES BACKGROUND

Royal COMM airlines is a small local airline that began filling the void when a big carrier deserted the country. The fleet comprised of 3 TP-300 airlines, and the airport maintains an overall maximum load of 60 percent. The air carrier has a cyclical history of revenue growth, and it has been decided to hand across to the current leadership to alter the cyclical patterns and to become a long-term gainful aircraft.

2.1 THE VISION AND MISSION

VISION

To be the most luxurious airline with the best services to our customers.

Mission

We will strive to be the best sought after the luxurious airline by offering the best customer service and some royal experience.

2.2 Key Values

• Customer-centric
• Trustworthy
• Reliability

2.3 Key Objectives

• To increase the load factor by a percentage of 70.
• To achieve reliability of 95%.
• To achieve the quality of 95%.
• To reduce the labor turnover to 6%.
• To expand to the new fleets and new markets.

3.0 Strategic choices/ decisions

3.1 Corporate strategy

The scale of the organisation is at the core of the cooperation strategy. The cooperation plan shows which sectors the business should spend and how varied the corporation will be, and also expresses a common perspective on the cooperation approach that the cooperation strategy helps the business to consider the nature and path in which the business will travel (Soekkha, 2019). The study of the environment and internal climate has been carried out to define collaboration approaches. External environmental studies help companies recognize patterns in the market and consumer actions that give them a competitive edge.

3.1.1 Internal Environment

Whenever the organisation acquired over the business, it has been realized that neither of the activities was involved in the possibility and global companies. Trying to exploit this potential Royal comm airlines extended the market to these two categories by awarding a new Backfilling premium flight on the premise that these areas will consist of expensive luxury customers (Low, 2020). As far as costs are concerned, price, business, and policy drivers are four factors that need to be balanced when going to a new sector. Given the size, fuel economy, and maintenance expenses, it was agreed to rent a plane, configured as a luxurious flight, to travel to the new industry.

3.1.2 External Environment

Marketing policy is being used to establish the overall goals of the organisation and involves a variety of factors such as finances, long-standing or temporary choices. Michael Porter (2008) suggests that the competitive edge can be accomplished in two different ways: cost reduction and distinction. Royal Com airlines have chosen to follow a hybrid approach, which entails having a comparatively lower cost than that of the competition and a commodity of distinction.

3.1.3 PESTEL ANALYSIS

Political environment

There will be stringent regulations for the airline industry in many other nations. It is mostly due to the potential risks that may result in fatalities or injuries or other irreparable harm (Xu, 2019). Many measures have been introduced to protect travelers rather than the airline industry.

Economic factors

Economic conditions have a significant influence on the airline sector. The latest market crisis has caused the travel industry to see its lowest period. Both the market and luxury travel have deteriorated. Airlines were already under struggle to deal with rising price increases. Such variables have made it hard to produce income.

Social factors

Royal comm Airlines also build social values like every other company because today’s customer has transformed. To accommodate the increasing demands of customers, airlines need to implement changes. Flight attendants now choose those airlines that provide extensive services with low tickets.

Technological changes

From those in the regular use of innovation in the worldwide airline business, the value of technical influences could be recognised. Flight attendants often tend to use their hand-held devices to control issuing tickets and sign-in facilities rather than creating a line or scheduling automatically (Yared, 2019). The airline industry is also lobbying on the internet network to draw more customers.

Environmental aspects

Environmental issues have the most significant effect on the airline business than that of any other sector. Energy is a considerable industry expense, and airlines are expected to spend more on eco-friendly and energy-efficient aircraft. The environmental change also affects the airline industry, as airlines are already expected to conduct ‘green flying’ to preserve the atmosphere.

Legal issues

Similarly, to political or economic factors, regulatory considerations are often of particular significance for the study of the external climate of the airline business. There are several laws designed for air transport and traveler health and protection.

3.1.4 SWOT ANALYSIS

Strengths

The main strength of Royal comm airline is the result itself — airline travel. Notwithstanding financial crises, airline travel continues to grow throughout time, but also because of population increase, but also because of a growing desire to travel.

Weaknesses

Royal comm Airlines have a high level of “spoilage” relative to many other sectors. If a plane leaves the runway, an empty chair is abandoned, and no income is produced.

Opportunities

Royal comm Airline industry development provides consistent development possibilities in both leisure and industry destination. This is especially true of international locations. Technological advances can lead to savings, with more gas-efficient airplanes to more efficient on-site procedures.

Threats

A global recession adversely impacts recreation, discretionary travel, and corporate travel. The cost of petrol has become the highest cost of several airlines. An upward surge could disrupt the business strategy.

3.1.5 PORTERS 5 FORCES

Negotiating power of purchasers

The airline business is composed of two classes of purchasers. First of all, there are single leaflets. They buy plane vouchers for a diversity of explanations that may be private or commercial connected (Moss, 2019). This Community is extremely varied; many individuals in industrialized nations have bought an airline ticket.

Negotiating power of sellers

In this scenario, the big manufacturers are commercial airlines. Airbus and Boeing are the leading two companies in the nation. In this field, inputs are highly standardised. Major airlines tend to be isolated from the facilities.

The threat of new entry

The risk of new entry is yet another critical element of the five forces. This dimension poses a low percentage to the airline business. There will be, moreover, two factors that increase the level of danger. First of all, there is a very switching cost. Second, no patented goods and services are included.

Threats of substitutes

It is, therefore, appropriate to consider the risk of replacements after examining at the risk of entry. This sector has a moderate risk substitutive stage. There are replacements for this in the airline business (Miller, 2020). Clients might choose other means of transport, including a vehicle, bus, plane, or boat, to go to their target destination.

Rivalry amongst the existing players

The last field of the five powers is the competition between the current teams. The game in the airline business is solid for several reasons. The market is quite sluggish at the moment. It is very much in the thoughtful stage of economic development.

3.1.6 Ansoff matrix

It’s the growing airline in the United States. Its center is situated at Dubai Air force base, which manages nearly 3,600 planes per week. It travels to even more than 150 towns throughout 80 countries. Royal comm airlines world Airlines provides preliminary aircraft and crew education, and the royal household supported a start-up project.

3.1.7 Bowman’s policy clock

Bowman ‘s Planned Clock is a template that evaluates the potentials for the competitive position of the organization to give this the most profitable position on the market. This role just isn’t very productive inside the Bowman Strategy Clock. With a low price, the company’s product lacks distinction, and the customer perceives no interest. This strategy is being negotiated based on keeping costs small to be competitive on the marketplace and hoping no rival to beat you.

3.2 BUSINESS STRATEGY

The focus of the airline on the latest information and technological technologies, and its focus on convenience, comfort, security, and customer care, will be the key elements around which the advertising plan will be developed. The airline will use a variety of strategies to identify its preferences and requirements. A relatively large advertisement budget is designed to buy space and resources to get the brand and messaging out to the growing possible consumer audience it can. Provided the robust market of major European airlines (Davis, 2020).

3.3 ADVERTISING STRATEGY

Business policy is designed to accomplish the business goals of the company. It could be used to gain a competitive edge from rivals, to boost revenue leading to an increase in net income. Market advertising in the airline business relies on a wide variety of consumers with different standards.

3.3.1 SEGMENTATION, AIMING AND POSITIONING

3.3.2 ADVERTISING MIX STRATEGY

The advertising mix approach is a combination of easy and operational methods used to produce positive outcomes from the target audience. Since the airline business is a network operator, 7p market research can be seen below, which illustrates the marketing decisions made by Royal comm airlines.

Products

It provides three attractive customisation options: Business Class, economy plus, and Efficiency Class. Each Class has comfortable chairs. During the first Class, travelers can afford the pleasure of their luxury room or even have a 40,000 ft bath! Specific dishes are served in various schools, but they are all delicious! Regardless of background, road, and aircraft, travelers can always anticipate a positive response and great pride from the gulf state.

Price

While it is usually costly to fly with Royal comm airline, the airline tends to be cheaper than many other major brands in the business. It’s also one of the major airlines with respect to the average cost per kilometer. For example, the average cost per km for the airlines is $0.09.

Place

Royal comm airlines are going to be flying to more than 100 countries in far more than 70 countries worldwide. It will have more than 269 airplanes and flew to locations on six nations. Dubai is the center of the airline. Clients can book their travels online through airlines.com. That’s the fastest and most comfortable form. They can also reserve their fares online with a variety of other sites. Other means of booking airline flights are by travel companies and tour operators providing the service.

Promotion

The Royal comm airline is running advertising campaigns through a variety of media outlets. The existence of the airline is always seen on TV, publish media, and the Internet. It also uses promotions for advertising purposes. It has an updated program with a few of the city’s most renowned football teams.

People

The Royal comm airline is renowned for its workplace diversity. It hires people from every region of the world. The labor force is made up of over 160 ethnicities. Capital expenditure by the airline in staff training and development is also commendable.

Process

Various market practices can have specific processes in place. The airline carries out a range of operations to provide its products to its clients. For instance, flight reservations, staffing, and staff training are among the critical services in the overall system. The airline’s online flight hiring process is convenient and easy.

Physical

The airline does have an immensely customer-friendly site. Related videos and photographs add charm to the physical world of the airline. The cabin crews wear stylish uniforms and comply with specific society’s standards.

4.0 DECISIONS ON WORKING CAPITAL

As when the company took lengthy-term decisions on Q1, it can be seen that the firm had to take a deficit in quarter one owing to the investments made in the leasing of the airplane,  demonstrates that lengthy-term investments were suitable for the company, and this can be seen that Royal comm airline has made profits above the two quarters 2 & 6 that are attributed to lengthy-term investments provided by the company. The product of the investments made to push into a new area; to do this, the RJ350E airplane was rented and then another salesperson employed.

5.0 DECISIONS ON HRM AND COOPERATE GOVERNANCE

HR procedures and edifices consistent with the organisation’s vision, mission, and objectives would enable the organisation to answer to dynamic and developing climates. During the first quarter, with the widening of the roads and the ships, 27 workers were introduced to the overall workforce.  A sales individual was employed to boost sales in the current enlarged markets. With the marketplace share of a new platform, it was agreed to hire more salespeople. Corporate democracy also plays a vital role in any kind of sector (Davidson, 2019). This ensures that the organization responds to shareholders by ensuring compliance, openness, and transparency. In the first part of 2017. Initially, the organization had to determine whether to deal with the media, and the choice to take a positive spin on the event didn’t work as planned. It prompted more queries from the media that prompted undesirable comments.

6.0 OPERATION MANAGING DECISIONS

Economic and ecological issues must be carefully researched and assessed to be used for the general planning and long-standing development of the organization to create a maintainable productive business. In making any strategic decision, it was ensured that they would be appropriately aligned with the company ‘s vision, purpose, and objectives (Chalk, 2019). To produce both rapid and lengthy-term outcomes, the organisational team has been able to prepare and deliver results in a given timeframe. According to pile et al. ( 2017), many five critical success factors can be applied to any systematic activity in any type of the company; velocity, cost, dependability, higher reliability. It can be seen that the Royal Com Airlines have been capable of adapting most of each to build a better product.

7.0 COLLABORATION BETWEEN MANAGEMENT TEAM MEMBERS

The philosophy of organisation adapted in Royal comm airline was the Community where all the workers, as well as the executive team, worked with dedication to the company, solidarity, and teamwork. Operations, financial services, and advertising came together until implementing HR choices. The corporation’s members engaged actively in the achievement of the company’s objectives. The corporate culture also allows creativity and innovation to bear in the business. Civilization is characterised as principles, traditions, production base, and processor. Revenue sharing and having to pay above the median shows that the business views and bonuses workers. The organisation agreed to pay salaries above all to all workers, rather than just the top managers and pilgrims, showing that the organisation believes in equal rights.

8.0 CONCLUSION

In conclusion, Tools like Porter’s 5 Strength Assessment, PESTLE Assessment, and SWOT Analysis have been used to examine the physical appearance of the industry and to utilize new markets. With the aid from the above resources and Bowman ‘s business clock, the administration chose to use its capital on a hybrid approach; to deliver a product with performance and trustworthiness better than the differentiators, and also provide a price marginally higher than the pricing strategies. As opportunity was identified in new marketplaces, the organization introduced market expansion and business growth as approaches that use the Ansoff matrix. STP was needed to determine the target audience, and it was not restricted to a particular group of people (Aulich, 2019). The goal demographic has been described as customers who would like to have the excellence of service at a fair price. By enforcing the 7P promotional mix, the leadership was capable of achieving the aims of the firm. By actively managing the assets, Royal comm airlines were able to turn a living of $285,948 and a share value of $39.48 while charging its workers 3 percent of salaries above the national average and 20 percent of revenue sharing. The organization also participated in freight buses, which did not have to pay off as planned, but will be used in the long term. During the growth of the business, Royal Com Airlines did not recognize its workers.

9.0 RECOMMENDATIONS

Royal Com Airlines have done well and made money. The existing strategy must, therefore, be pursued. The corporation could focus more on the two approaches of marketplace growth and market diffusion and try to flourish in both areas as the leading airline. This can be accomplished by ensuring high excellence, dependability, and client satisfaction while at the same time attempting to lower the price by sluggishly retaining sales and profits (Binkley, 2019). As when the cargo operation in the airline didn’t do so well, the leadership should concentrate more on this. The advertising economical can be improved, and a large share can be assigned to the advertising of freight. Advertising could be conducted out by using online marketing for the board audience. Some other tactic which can be used by Royal Com airlines either to an external provider or collaborate with companies and organisations that often use air freight.

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