Organization Behavior of UAE Company - Research Paper Example

? Organizational Behavior Organization behavior of UAE Company 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 (Management Guru, 2012). In the first year of operation, Emirates Airline started its flights in Karachi. It started its European operations to London in 1987. After 3 years, the company was able to double its operations thereby allowing it to grow at annual rate of 25%. 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). 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 behavior 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 analyses 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. SWOT analysis Strengths Emirates Airline flies to six continents in the world. In this perspective, it is able to cover approximately 100 cities. In the Asian continent, the company has a market share of approximately 39 percent (Free Swot Analysis, 2012). Moreover, it is a state owned corporation thereby boosting its financial base. Moreover, it lies in between east and west Asia thereby allowing the company to boost its market share significantly. Weaknesses There is open competition in the country which has allowed other competing businesses to venture in the market. Moreover, the company is faced with a dire need to improve its performance in all the regions around the world in order to increase its market share. In addition, the company does not pay its labor sufficiently thereby limiting its productivity. Opportunities Since Emirates Airline has joined the global airline alliance, it should focus on areas such as Disney Land which is attracting international communities to use Emirates Airline as their first choice. This has strengthened the company’s operations globally. Threats Since Emirates Airline is owned by the state, it is heavily affected by the policies that the government implements. Moreover, since different types of labor are required to cope with different types of aircrafts, it becomes difficult for the company to meet the demands of the employees without any conflicts. PEST Analysis Political The political scene in the Asian pacific has been favorable in 2000s. As a result, most of the countries are making agreements which have facilitated trade within the region. These agreements have opened up opportunities for the company (Articlesbase, 2012). Economic The United Arab Emirates economy has been advancing at a consistent pace thereby increasing the overall income of the country. As a result, the revenue per capita has grown significantly thereby allowing the people in the region to make use of air transport. As a result, Emirates Airline has noted a steady growth in the recent years (Articlesbase, 2012). Social Emirates Airline conducts its operations in an area that has a large number of employees. Most of these employees do not demand high compensation. In this case, there is a huge difference in labor costs with countries such as the US. In this case, the company has been able to boost its profits significantly. However, many employees are becoming aware of their potential and are thus demanding for extra payment. Since most employees belong to different labor unions, they demand special attention from the human resources. Technological Technology boom was observed in the nineties. However, today, companies are being forced to look for other areas where they can gain a competitive edge. For example companies that make use of the internet are more convenient to the customers because they can check the convenience of a flight before they depart. However, Emirates Airline has not been able to meet this demand in an efficient manner. Challenges/ Problems facing the organization 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 characterized by various forms of political unrest. As a result the Emirates airline is characterized 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 characterized 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 analyzed 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 labor 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 labor 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 the overall air transport in the region has improved significantly. Though this may be seen as a strategy for attracting many customers, it can also be observed as a threat. This positive growth means that there is a positive growth within the region. Moreover, more airline companies are emerging in the market. In this perspective therefore, competition is becoming very stiff to cope with. In this case therefore, it is true that Emirate Airline is facing stiff competition in the market (Management Guru, 2012). Moreover, as more players are entering the market, the company has been forced to improve the quality of services that it provides to its clients. As a result, the company has been forced to incur an upsurge in its costs of operation. Moreover, other airlines in the region are adopting a low cost strategy thus limiting the profitability of Emirates Airlines. This has made it difficult for the company to adopt competitive strategies in the market effectively. Moreover, other good performers are emerging in the market. As a result, the company has been forced to incur huge costs in order to improve its competitiveness in the market (Articlesbase, 2012). However, these costs are so high thus forcing the company to charge its clients high prices. This has reduced the company’s customer base significantly. OB Theory X and Y The OB theory stipulates that the average person does not like work and has no ambition to work in an organization. In this case, a person does not care about the goals of an organization. In this perspective therefore, the study reveals that the company is resistant to the activities of labor unions. This is because it is insensitive to its employees’ needs. This is an indication that it does not respond to its employees needs in an appropriate manner. In this case, the performance of the organization is deteriorating since its employees’ needs are not catered for in an appropriate manner (NetMba, 2012). With regard to theory Y, it is true that the needs of the employees within the organization are not adequately met. When employees are fully satisfied with they would be committed to the goals of an organization. In this case, people can manage to handle responsibility in an appropriate manner. However, since the organization is not willing to link with labor unions, this is an indication that it is not responsive the employees’ needs (NetMba, 2012). As a result, it is important for the organization to link with labor unions so that it can understand its employees’ needs thus meet their needs in an adequate manner. Recommendations In order for Emirates Airline to boost its competitiveness in the market, the company needs to be responsive to the needs of its employees in the market. Moreover, the company should diversify its activities so that it can diversify operations thereby limiting its susceptibility to risks. In addition, it should focus on technology adoption in order to be efficient in providing services to its customers. This way the company would be efficient in terms of providing its services to its customers. Conclusion From the analysis therefore, it is true that Emirates airline has been one of the most successful airline companies in the market. It has been able to adopt strategies which have allowed it to emerge successful in the market. However, the company is experiencing competition since other strong companies are emerging in the market. Moreover, the Middle East is often characterized by politically instability thus limiting the operations of the company within the region. Therefore, the company needs to devise ways of coping with political instability, technological advancement, competition, and changing needs of clients in the market. References Articles base. (2012). Organisational Strategy-Emirates Airline. Retrieved from http://www.articlesbase.com/flights-articles/organisational-strategy-emirates-airline-1908526.html Free Swot Analysis. (2012). Emirates Airlines SWOT Analysis. Retrieved from http://www.freeswotanalysis.com/aerospace-airline/178-emirates-airlines-swot-analysis.html Management Guru. (2012). Emirates Airlines: Brief Introduction. Retrieved from http://themanagmentguru.blogspot.com/2011/03/emirates-airlines-brief-introduction.html NetMba. (2012). Theory X and Theory Y. Retrieved from http://www.netmba.com/mgmt/ob/motivation/mcgregor/ Reportlinker. (2012). Emirates Airline - Strategic SWOT Analysis Review. Retrieved from http://www.reportlinker.com/p0484208-summary/Emirates-Airline-Strategic-SWOT-Analysis-Review.html Read More