Free «Strategic Management» Essay
To begin with, strategic management can best be described as a calculated management style that is aimed at maximising profits and minimising costs. Generally, it is employed in organizations and big businesses to ensure that the performance of the business is maintained at whatever level of exposure (Jarach, 2005). In this sense, there are several issues of concern that can help an organization or a business to apply the best strategic management in order for the business to flourish. Following this point, both internal and external analysis of a company can work the trick of competency in the market. It is within this context that the External Analysis for Auckland International Airport (New Zealand) has been brought out. In connection to this, the main dynamics, drivers or forces of the Airport have been explored. Accordingly, the key trends that have been realized from the macro environment likely influence the company have been discussed. Moreover, the key competitors and the competitive intensity have been brought into view. Subsequently, the main strategic issues or problems that might be facing the industry and the company have been explored.
First of all, Auckland International Airport (New Zealand), is one of the busiest industry in New Zealand contributing to a greater percentage to the economy of New Zealand. It is located at Mangere about 20 kilometres from the city centre. It is amazing how the airport operates in the sense that it welcomes over 70 percent of the visitors who visit New Zealand. It is the gateway to the New Zealand owing to its location and infrastructure (Moodie, 2008). Its strategic management approach has contributed much towards becoming a leading airport in New Zealand. It is a leading company in terms of the passengers it receives and the ones that depart. In both cases, it has outstanding records in terms of millions that brings about the exceptional financial performance it has experienced over the years.
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Accordingly, the airport is committed to ensuring the touring and safety of the visitors from the arrival date up to the departure time. Another key driver of the company is the fact that it works closely with the consumers with the sole aim of ensuring the satisfaction of the customers. This makes it to farewell in terms of the relationships it has with the customers and as a result, a customer would not hesitate to use their flights due to the satisfaction realized. In the same line of thought, the port has ensured that it meets the needs of the customers based on a long term basis.
In order to accomplish this, the management has maintained an attitude of preparedness encompassing even the improvement of infrastructure to cater for the anticipated growth. Maintenance of a capacity that can accommodate growth has made the port to thrive even at a global state (Moodie, 2008). Being recognized internationally, Auckland International Airport has maintained integrity, efficiency and has in the larger perspective maintained an international level of trust and confidence owing to low levels of accidents related to it as well as safety issues.
Needless to say, the port has maintained an excellent performance in terms of its services to the customers and the ability to accommodate growth and change (Jarach, 2005).The Airport management plans being long term, it has maintained high sustainability goals in that it has worked hard towards sustainability. It has managed this through enacting of the environmental laws as well as engaging in climate change mitigation. This is made it to make it through the challenge of sustainability in the everyday changing world.
At the same time, the macro environment factors have greatly influenced the company. So to speak, these are the external and more specifically the large scale factors from the global scale that has made the company to either grow or slow in the growth. The global market in the first place has posed a great challenge to the port owing to the fact that it has enhanced competition. This is due to the fact that it has to cope with the global financial crisis that is responsible for issues to do with currency fluctuations. Following this fact, the company is greatly influenced by the fluctuations and the state of the global market.
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Again, the company might also be influenced by the emergence of war and terrorism that has so much threatened the world of aviation especially after the incident in US of the 11th September, 2001(Auckland Airport Report, 2010). Another thing that can influence the company from a large scale perspective is the number of accidents recorded that are related to the port. Also, the safety and security provided by the Port is an important factor influencing the company. International standards that define the operations of an airport greatly influence the company from the regulation of prices for flights, the fuel prices and safety assurance in the larger perceptive. At the same time, the cost of insurance that is defined internationally greatly influence the company.
Having tackled the issues of the macro environment factors that influence the company, it is important to bring into context the key competitors and the competitive intensity that the company is facing. As a matter of fact, the competitors of Auckland International Airport have faced a tough battle owing to the solid ground of the Port operations. In Australasia, it has been ranked as the fourth busiest after Sydney, Brisbane and Melbourne airports. At the international level, it is ranked as the second busiest in Australasia and at the same time the third busier than Melbourne airport in regard to the international passengers (Auckland Airport Report, 2010). In this conception, the airports mentioned pose remain as great competitors of the company.
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Having received an international recognition, it is required of the Auckland International Airport to maintain a reputation as well as a level of performance that can fit in the global competition market. Essentially, the competitive intensity is so high owing to the global financial crisis and the globalization issues (Auckland Airport Report, 2010, p.32). Since the company serves both international and domestic passengers, standards have to be maintained that rather bring about profits. Also, company should consider the global market prices as well as the challenges that are being experienced globally not withholding the effect of price hiking for jet fuel and the valuation of the currency at the international level.
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In line with this, there are several strategic problems/ issues that face the aviation industry as well as the Auckland International Airport. For one, there is the problem of global financial crisis, high fuel prices, increased insurance costs, increased currency value fluctuation and a competitive market. Again, the problem of war, terrorism and insecurity has challenged the industry. In this regard, Auckland International Airport faces the problem of fluctuating value of currency in the international market, reduced number of international passengers due to war and terrorism and the fact that the currency has increased its value scaring away visitors(Auckland Airport Report, 2010, p.32-34). High costs of maintenance along with a fluctuating domestic economy have threatened the company management. Additionally, the limitation and abolition of free duty sales may adversely affect the port as it largely depends on it (Moodie, 2008). Altogether, Auckland International Airport remains a key factor in its effort to overcome the external forces that affects it up to the international level.