ASSIGNMENT

SUSTAINABLE OPERATIONS MANAGEMENT

MASTER’S OF BUSINESS ADMINISTRATION (MBA)

TO

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI

Under the Guidance of: Submitted by:

ANKUR KUMAR

DR. SANJAY KR. SHARMA Enroll. No. - 00816603921

UNIVERSITY SCHOOL OF MANAGEMENT STUDIES

NEW DELHI- 110078

BATCH (2022-2024)
QUESTION: A comparative study of Corporate/ Business and
operation strategy of “FLY EMIRATES”?

EMIRATES AIRLINES
INTRODUCTION:

"Emirates Airline" (The Emirates Group, 2014),The airline is entirely owned

by the UAE government. "Emirates launched its first flights from Dubai on
October 25, 1985, using just two aircraft—a rented Boeing 737 and an Airbus
300 B4" (Emirates, 2014a, p. 1).

The airline has consistently placed an intense focus on quality above number,
and as a result of this philosophy, it has grown to be one of the most well-liked
airlines in the world. The airline's first two years were challenging, but
starting in its third year, it consistently posted significant profits.

The airline features a complete freight operation in addition to transporting

people to and from foreign areas. Additionally, the airline provides services
for developing airline information technology and destination management
(Emirates, 2014a).

The growth of transportation and communication technologies has

metaphorically made the world smaller, allowing for the emergence of a
globalised economy. Tourism and business travel are increasingly significant
global industries as a result of globalization. With an estimated more than
three billion passengers expected to travel in 2016, the expansion of these
industries has completely transformed the airline industry.

According to IATA (International Air Transport Association) reports there

were approximately 850 million more passengers on flights last year than in
2011. In 2012, the International Air Travel Association The aviation sector has
benefited greatly from this form of economy, and at the moment, Emirates
Airlines is among the most dominant businesses.
Emirates airlines is a Dubai based company that was started way back in
1985.

With a $10 million (USD) start-up investment from the government of the
United Arab Emirates (UAE), Emirates founded in 1985 and has since
maintained its financial independence. In the beginning, they operated two
medium-sized planes on brief runs between Dubai and nations in the Middle
East. Emirates Group, the parent company of Emirates Airlines, is made up of
the Dubai National Air Transport Association (DNATA), catering services,
aircraft maintenance, a hotel and entertainment group, and other enterprises.
(Safi, 2011)

The airline serves the demands of numerous nations worldwide in addition to

the domestic market (UAE). The influx of new competitors and the fierce
worldwide competition force airlines to take a variety of steps to survive.

As one of the biggest airlines in the world with a fleet of 250 wide-bodied
aircraft, Emirates has grown over time. This consists of the Airbus A380,
B747-8F, and Boeing 777-300ER. With over 50 million passengers carried in
2017 because to their vast fleet, they are now the fourth-largest airline
globally.

40% of all flight movements at Dubai's airport are made by Emirates, which
has a monopolizing presence in the UAE.

Dubai maintains a physically significant position in relation to Europe and

North America by serving as an ideal halfway point for fuel stops between
Asia and America due to its centre location between the western and eastern
continents. The airline, which has been named "Best Airline in the World" by
Skytrax four times, has built a reputation for providing great customer
service, loyalty, value, and luxury. Their focus on detail, leadership, customer
service, and global competitiveness are things they are quite proud of. Due to
Emirates' polarizing effect, some rival airlines have tried to restrict their
market capitalization.
Because of the surge of new competitors and the fierce worldwide
competition, emirates airlines must take a number of preventative measures
to stay in business. Emirates Airline has taken certain actions to maintain the
competitiveness since it is also feeling the pressure of such competition.

This investigation will examine their strategies related to their competitors as

well as their business strategy and operational strategy.

CAPACITY OF THE AIRLINES:

The following aircraft are part of Emirates Airline's fleet:

 The Emirates A380 offers the following amenities, according to

Emirates (2014b, p. 1): "Private suites and shower spas in first class;
flat-bed seats in business class; additional space and custom lighting in
economy class; and in-flight Wi-Fi throughout the aircraft."
 Airbus A340-500: This aircraft, which was added in 2003, can carry 258
passengers in total across all three classes.
 Airbus A340-300: This airplane can accommodate 267 passengers in all
three classes. With four engines, there is more range.
 The Airbus A330-200 is available in two configurations, one with two
classes and the other with three classes. Those with two classes can fit
278 people, while those with three can accommodate around 235
passengers.
 Boeing 777-300ER: This particular version comes in two variations. The
one with two classes may accommodate 427 or 442 passengers, while
the variant with all three categories can hold 364 or 58 or 54. The
backbone of the airline is thought to be this particular aircraft.
 The Boeing 777-200LR is undoubtedly the world's most technologically
advanced aircraft. In this model, every feature—including safety,
comfort, range, and speed—has been enhanced.
 The Boeing 777-300, which was added to the fleet in 1999, is capable of
seating 364 individuals across all three classes.
  Boeing 777-200: This version comes in two variants. Both the one with
two classes and the one with three different categories have a maximum
capacity of 346 and 290 travelers respectively.

The airline provides an array of aircraft types to transport passengers to

different locations. To meet the unique demands of passengers, there are
many classes as well. To impress the clients, there have recently been a few
service additions.

"In the financial year the period between 2011 and 2012 Emirates carried
35 million passengers and a total of 1.8 million tons of cargo" (Emirates,
2014e, p. From the United Arab Emirates, Emirates Airways offers at least
1250 flights per week. The number of flights makes up 40% of all flights to
and from Dubai (Emirates, 2014f, p. 1).

MARKETING & BUSINESS STRATEGY

Emirates are regarded as the biggest airline in Western Asia and offers up to
3,000 flights per week. The airline has experienced the fastest growth in the
globe and has consistently achieved net profit increases of 25% on an annual
basis.

2013 (Jammoul) Emirates Airlines asserts that their employees' aptitude for
comprehending how the cultural world is bound together is a major factor in
their company's quick expansion. They build on this theory by asserting that
meeting customer wants is based on external issues including international
trade, politics, and economics, population change, diversity, and sustainability.

Currently, Emirates is threatening to eliminate North American airlines like

Air France and KLM from the "global transport" airline industry. 2013
(Jammoul) Emirates has the following benefits that keep it competitive
worldwide:
1. Their core hub's location in Dubai serves as a perfect halfway point
between the eastern (India, China, and Australia) and western (the United
States and Europe) worlds.

2. Eliminating collaborations between companies selectively can speed up

decision-making.

3. Prompt and aggressive responses to developments in the global economy

and markets.

4. Constant attention to detail and technical advancements in the areas of

customer service, loyalty schemes, and onboard facilities.

5. Luxurious, first-rate customer service, efficiency, and value are

characteristics of a company's image.

6. Their capacity to consistently offer low prices by leveraging the UAE's

robust economy and affordable labour costs.

7. Creates marketing efforts that are well-known around the world by using
powerful sports teams and innovative advertisements.

8. Has an alluring brand image that is easily recognizable and consistent to

each and every customer.

All of these advantages have given us an edge over other major operators
across Europe and the Americas that are unprecedented. Airlines like Air
France have claimed they are receiving unfair government subsidies as a
result of Emirates' recent large profits and aggressiveness towards new 4
markets.

Emirates' response clarified that they operate as a totally independent

organization from the UAE's government and do not receive any subsidies, a
claim that has been supported by auditing and studies carried out by other
international banks (2013 Jammoul).
One of Emirates' the primary competitive benefits is its intrinsic value.
Because it has its headquarters in the UAE, the airline has many benefits in
terms of value. According to a data analysis by Oxford Economics, Emirates
has labor expenses that are forty percent less than those of rival carriers like
Air France and KLM, and fifty percent lower than those of American carriers
and United Airlines. (Safi, 2011) Approximately one fourth of total operating
expenses could include labor. (Demir, 2014) Therefore, reducing this expense
can significantly affect the airline's budget and ticket price.

OPERATING EXPENSE OF AN AIRLINE IS AS FOLLOW:

 Depreciation- 6%
 Aircraft rent- 3%
 Labor & Benefits- 28%
 Fuel- 35%
 Maintenance- 16%
 Others- 12%

[Data of an airline’s operations expense. (Demir, 2014)]

LABOUR COST OF AIRLINES PER EMPLOYEE

The government and the country of origin are both taken into consideration
while calculating labor expenses. It is widely accepted that the higher labor
expenses in North America and Europe are caused by laws and taxes. On the
contrary, the UAE has no corporate tax framework and solely imposes
personal taxes on revenues surpassing $350,000 CAD (2016's Export
Enterprises SA).
Emirates can provide cheaper airline tickets and pay their employees much
less than a Western corporation since this tax structure minimizes operating
costs and employee living expenses dramatically.

Labour cost of some airlines in US $000s according to the data given by

(Export Enterprises SA, 2016)

 Lufthansa- $110000
 Air France-$100000
 Qantas-$92000
 United airlines-$92000
 American airlines-$88000
 British airways-$72000
 Cathay pacific-$65000
 Thai airways-$47000
 Emirates-$47000
 Singapore airlines-$45000
 Malaysia airlines-$34000
 Air India-$24000
 Jet airways-$23000
 Sri Lankan airways-$17000

Emirates can spend more money on advertising and customer service

enhancements as a result of having lower staffing expenses, which ultimately
boosts their total competitive edge.

There are several reasons why Emirates has become a well-known brand
around the world, but one of the most notable is due to its aggressive
marketing initiatives in the sports and entertainment industries. Emirates
claims to be the airline with the best reputation among athletes.

Through their sponsorship of the FA Cup and Benefica, PGA Tour golf,
Formula 1 racing, the America's Cup sailing, horse racing, and more recently
Major League Baseball, they are currently quite active in European Football.
Emirates have inked the largest sponsorship agreement in ATP Tennis history,
securing brand exposure at 60 tournaments over a five-year period. A total of
29 countries, 90% of which Emirates flies to, will be included in the campaign,
which will ultimately reach over 800 million people worldwide (Emirates
group, 2016).

Such international marketing initiatives are uncommon among airlines, which

highlights the assertiveness that Emirates chooses to convey.

This is further supported by the fact that in May, Emirates was named the
primary partner for the 2018 European FA Cup. This competition draws 1.1
billion viewers worldwide and reaches football enthusiasts from 700 clubs.
(2016,Emirates Group). These two recent transactions show polarizing
marketing tactics and were only made possible by Emirates' capacity to
consistently generate enormous revenues and their independent corporate
ethos.

Emirates airlines also signed sponsorship deals with Real Madrid (Spanish
football club) back in 2013 for around $35 million per year and then again
renewed the contract with reportedly $70 million per year , i.e., the 2 nd biggest
sponsorship deal behind Football club Barcelona deal with Spotify i.e., around
$85 million per year.

From the perspective of an airline, customer service is focused on, among

other things, customer-employee relationships and treatment, ease of check-
in, technology implementation and interaction (mobile applications, online
booking), cleanliness, and loyalty programmes.

• Food delivery

• Seat comfort

• Disembarkation

• General experience environment

The unpredictable nature of these variables makes them potentially

challenging to manage. To maintain universal uniformity, Emirates has
actively invested in customer service technology while working relentlessly to
establish a strong business culture related to customer care.
LOCATIONs where it operates:
UAE-based Emirates Airline has its corporate headquarters in Dubai. The
corporation runs at least 200 aircraft that travel to numerous worldwide
locations. The following regions are serviced by the airline:

 Africa

Ivory Coast, Ghana, Ethiopia, Algeria, Egypt, South Africa, Morocco, Guinea,
Senegal, Tanzania, Uganda, Zimbabwe, Sudan, Nigeria, Angola, Zambia,
Mauritius, Kenya, Seychelles, Libya, and Tunisia are among the nations where
the airline operates in the African continent.

 Pacific and Asia

Australia, India, New Zealand, Thailand, China, Philippines, Bangladesh,

Vietnam, Hong Kong, Pakistan, Indonesia, Afghanistan, Malaysia, Maldives,
Japan, Korea, and Taiwan are among the nations where the airline operates in
the Asia and Pacific area.

 Europe

The airline operates inside the following nations in Europe: the Netherlands,
Greece, Spain, the United Kingdom, Denmark, Ireland, Germany, Switzerland,
Turkey, Ukraine, Cyprus, Portugal, France, Spain, Malta, Italy, Russia, the
Czech Republic, Sweden, Austria, and Poland.

 Americas (North and South)

The airline operates in the following nations in this region: Americans,

Argentines, Brazil.

 Eastern Europe

United Arab Emirates, Jordan, Iraq, Bahrain, Lebanon, Saudi Arabia, Qatar,
Kuwait, Oman, Yemen, and Iran are the nations in this region where the airline
operates.
 SWOT Analysis

Strengths
 Top global brand with strong reputation for customer service and value.
 Effectively manages the needs of their customer base using technology.
 Highly modern and efficient aircraft fleet. Strong corporate culture.
 Ideal geographic location serving as a halfway point between the western
and eastern hemispheres.

Weaknesses
 Due to remoteness, only long-haul operations are possible.
 Long flight times.
 Global scrutiny of Dubai's labor laws.
 Rising fuel prices.
 Chilly welcomes from other airlines in Europe and North America.
 Competition with airline alliances that might be more powerful.

Opportunities
 Global marketing sponsorship agreement with ATP Tennis.
 Sharp increase in tourism rates worldwide.
 A380 NEO and 777X, two upcoming more energy-efficient aircraft.
 Sharp increase in tourism rates worldwide.

Threats
 Include rising rivalry from Qatar and Saudi Arabian Airlines in the
Middle East.
 The potential for global economic turmoil brought on by Middle
Eastern tensions.
 CONCLUSION
According to SkyTrax, Emirates Airlines currently has the best rating of any
airline in the world. Low labour costs, a fleet of fuel-efficient, customer-
focused aircraft, an avoidance of corporate affiliations, aggressive sports
marketing, and a commitment to first-rate in-flight customer service were
these advantages that were examined throughout the course of investigation.

Their lower staffing expenses are arguably their biggest advantage because
they enable Emirates to lower ticket prices and spend more on marketing and
aircraft upgrades.

Emirates has a bright future since they plan to keep investing in customer
service technologies and upgrading their fleet to even more fuel-efficient
models like the 777X and A380 NEO. They are also a component of Asia's
growing middle class, which will increase demand for travel.

As globalization is accelerating, Emirates will seize this chance and expand its
flight schedule to North America.

REFERENCE:
  http://www.theemiratesgroup.com/english/facts-figures/annual-
report.aspx
 https://en.portal.santandertrade.com/establish-overseas/unitedarab-
emirates/tax-system
 https://ivypanda.com/essays/operations-management-practices-of-
emirates-airline-essay/
 https://www.grin.com/document/307555
 https://www.researchgate.net/publication/
313845150_Corporate_Strategies_Strategic_Options_and_Integration_Em
pirical_Study_on_Emirates_Airline
 https://aviationstrategy.aero/newsletter/May-2005/1/Emirates
%3A_the_long-haul,_low_cost_carrier
 http://www.iata.org/pressroom/pr/pages/2012-12-06- 01.aspx

QUESTION: Critical evaluation of TAYLORISM?

ANSWER: Frederick Taylor, who is regarded as the founding father of modern
management, was raised in a wealthy Philadelphia family and attended Stevens
Institute of Technology in New Jersey to study engineering. Taylor started off as a
common worker and trainee foreman. He would become chief engineer very
soon.

One of the most popular concepts concerning organisational management is the

scientific management theory (also known as Taylorism). The idea was first put
forward in Frederick Winslow Taylor's remarkable 1911 book Principles of
Scientific Management.

Scientific management, also referred to as Taylorism, is an organisational model

that examines and combines workflows to increase worker efficiency. F W Taylor
created the fundamental concepts of the theory in the 1880s and 1890s, and they
were initially made public in his monographs.

He was able to construct shovels that would allow the worker to work all day by
researching with several shovel designs for usage with various materials (from
"rice" coal to ore). By doing this, he reduced the workforce at the Bethlehem
Steel Works from 500 to 140 individuals who were shoveling. The analysis of the
work design and the method study were significantly aided by this work and the
research he conducted on the handling of pig iron.

Both "Shop Management" (1905) and "The Principles of Scientific Management"

(1911) are management texts.

Although "motivation" is a psychology term that would not be imported into the
management language until much later, it was his direct observations of men at
work that inspired him to formulate what is now known as the "motivation"
hypothesis.

This approach was referred to as scientific management by Taylor. Although

having a positive attitude towards workers, Taylor's point of view considered
labor as something that might be "engineered" to be more efficient, much like
machine work. His management views are advocated globally (and perhaps
gained more traction in Japan than in the United States or Europe) and would be
controversial at home.

Taylor wrote Shop Management in 1903, outlining his management philosophies.

According to Taylor's theory, workers were ineffective because they tended to
restrict their workload or perform less than they could to keep the job
responsibilities from finishing up and costing them money. Additionally,
management did not effectively arrange the job or offer the right incentives.

Taylor had discovered serious flaws while observing industrial operations. Some
of them included:

(i) Management's unclear understanding of worker-management

responsibilities
(ii) A lack of effective work standards
(iii) output limitations and improper job design
(iv) Management's unscientific decision
(v) The absence of adequate studies about the division of work among
departments.

Taylor introduced the piece rate system for production administration in shop
management, and later, in 1909, he released Principles of Scientific Management,
his best-known work. Taylor's study, which is featured in this book, used
stopwatch timing as the basis for observations. He began to dissect the times into
their component parts, and he is the one who first used the term "time study".

Scientific Management Principles are as follow :

When Taylor published 4 Principles of Scientific Management in 1911, he carried
on to further develop his management theories. There were four primary
principles of scientific management:

1. Replace "rule of thumb" working practices with ones that are informed by
research into the tasks.
2. Choose the worker using science, and then train, educate, and develop him or
her.

3. Give each employee thorough instructions and oversight for the assigned
assignment.

4. Assign roughly equal amounts of work to managers and employees so that the
managers can organize the work using scientific management concepts and the
employees can actually complete the duties.

The workforce was clearly defined by these concepts. Physical labor was
delegated to the workers, and management was granted the right to decide how
the organization should be conducted.

In 1911, Taylor asserted that in order to achieve maximum production, it is crucial

to thoroughly look into the work and choose an optimal approach to it. He
subsequently constructed the theory's four fundamental concepts: the real
science reflecting the finest management, scientific worker selection, scientific
training and development, and cordial worker-manager cooperation.

Taylorism, which is a priceless legacy and is continually evolving, is still closely

related to management in the twenty-first century.

First of all, postwar management is molded by scientific management and used in

postmodern organizations (Kemp, 2013).

The four Taylors principles are shown to be applicable in postmodern society

through the prism of postmodern analysis. The measurement of knowledge
generation follows the real science foundation (Jones, 2003). Total Quality
Management, also known as TQM, is recognized as the postwar era's
development of scientific employee’s selection (Daniel, 1995).

Furthermore, rather than emphasizing a single skill, scientists choose employees

based on their versatility to take on a variety of tasks. Employee participation in
decision-making is important for the notion of scientific education and
Development of workers to be applicable. The idea was established to empower
employees rather than dominate them (Clegg, 1990). The fourth principle is
applicable to how postmodern organizations manage teamwork. The idea is
consistent with the idea that tasks should depend on one another in order to be
completed (Gibson, 2008).

Second, Taylorism undergoes transformation in response to modifications in a

worldwide integrated environment.

The shift in intellectual ability of organizations from mechanism to digital

Taylorism provides solid evidence of this (Brown et al., 2010).

Exploring knowledge work and codifying practical knowledge are two goals of
Taylorism on knowledge and packages that can be transferred and operated by
others globally. Whereas management acquired, identified and reorganized
workers' knowledge in the assembly line in the 20th century, it is now the
responsibility of taylorism on knowledge to explore knowledge work in the 21st
century. In a future with educated labor, skills can be tailored and distributed in
this way to lower the cost of knowledge work.

In actuality, digital taylorism aids numerous businesses in various sectors.

Criticism of TAYLORISM
Taylor attracted a lot of criticism because of his uncompromising method of
developing and putting into practice his ideas. He suggested that the scientific
method could potentially be used to solve any issue and could benefit both
managers and employees equally.

According to Taylor: "Under Scientific Management, the conventional dictatorship

is a thing of the past. Under Scientific Management, the person in charge of the
company is subject to identical rules and laws that apply to the workers as they
are to the workers themselves, and the standards created are fair.”

Taylor claims that the core of scientific leadership is a complete mental revolution
on the side of staff and upper management about how they are accountable
towards one another, and towards all of their everyday struggles. It requires
understanding that their shared interests are not at odds with each other and
that cooperation may contribute to mutual success. Workers' and supervisors'
mindsets required a shift. Applications of scientific management, however,
occasionally overlook two intrinsic challenges:

a) Individuals are unique to one another, so the most effective method to

function for one person may be ineffective for another

b) Since workers' and management's economic interests are rarely the same,
Taylor’s method of assessment and required training are frequently resented by
workers and at times compromised by them.

 Taylor recognized both issues, but managers who simply focus on possible
efficiency gains typically don't completely address them. According to
Taylor, scientific management is ineffective unless the workers benefit.

Some other criticisms were:

Taylor avoided equating humans with machines, but some of his critics have used
the analogy to illustrate how Taylor's strategy increases productivity by
eliminating wasteful or needless effort. Others argue that since employees are
considered human, this strategy ignores the complexities they bring about.
According to others, the rise in employee dissatisfaction was prompted by the
dismissal of worker personalities.

REFERENCES
 https://epgp.inflibnet.ac.in/epgpdata/uploads/epgp_content/S000030PU/P001502/
M016156/ET/146536875003.ET.Taylor-Roopinder_Oberoi.pdf
 http://www.savap.org.pk/journals/ARInt./Vol.3(2)/2012(3.2-55).pdf
 https://www.clausiuspress.com/conferences/AETP/ETMHS%202018/BCW037.pdf
 https://nap.nationalacademies.org/read/1867/chapter/18
 https://files.eric.ed.gov/fulltext/ED566616.pdf
 https://courses.lumenlearning.com/wm-introductiontobusiness/chapter/scientific-
management-theory/